Interestingly, Indonesian President KH Abdurrahman Wahid in his recent state-visit to India had proposed a triangular economic alliance of India, Indonesia and China to show Asian solidarity and reduce dependence on the West. "India's response is not yet clear," Indonesia's Ambassador to New Delhi Zakaria Soemintaatmadja told The Financial Express. Will Wahid's initiative work? "We cannot force economic and trade relations. It depends on businessmen. Culture relates to the heart, mind and sentiments. We have similarities. May be the common Asian culture would drive the engine of economic growth." An optimistic, Zakaria is hopeful. The following are excerpts from the interview:
The recent visit of President Wahid is a major initiative by Indonesia to deepen and broaden the level of economic cooperation. How have the relations between the two countries progressed in the decade of the nineties?
Our relations are stable. A trade agreement exists since 1978. It needs to be reviewed in the wake of globalisation and WTO. In 1995, during the Third Senior Officials Meeting on economic and trade relations in Jakarta, we had reached an agreement to boost investment cooperation, particularly joint ventures.

It is necessary to hold the fourth meeting in the very near future and involve chambers of commerce and industry.

Another official body, Joint Consultative Forum (JCF), formed on the basis of an MoU in 1997 by our ministries of foreign affairs, discusses all aspects of bilateral relations. It met for the first time in New Delhi in November 1999.

In business, cooperation between Indonesian Chamber of Commerce and Industry (KADIN) and India's Ficci and Assocham has manifested in periodic Joint Business Council (JBC) meetings. We are aware of India's "look East" policy wherein since 1996, it is actively involved in a dialogue with ASEAN to augment bilateral relations with each of its South East Asian neighbours.India has also participated in ASEAN's Post Ministerial Meeting (PMC) and ASEAN Regional Forum (ARF). ASEAN countries have appreciated the Indian suggestion to establish a Think Tank Network to broaden the interaction and a Track Two Forum of intellectuals, scholars and businessmen to provide inputs to both sides. President Wahid's visit will result in the establishment of a Joint Commission, headed by our respective Ministers of External Affairs.

It will become the highest body to discuss all aspects of our bilateral relations. We have agreed to cooperate in exploring mineral gas in Indonesia for marketing in India. There has been an agreement on promoting small and medium enterprises.

KADIN and MMTC Ltd. have signed an MOU on counter-trade, whereby products and not money would mostly be the medium of trade. Another MOU was signed by our respective foreign affairs ministers to promote tourism. The Indian government has offered to establish a vocational training centre in Jakarta for improving Indonesian human resources.

What are Indonesia's objectives for the Indian market as well as the short, medium and long-term strategies?
Indonesia's objective for the Indian market is very clear- how to increase our exports, especially in view of our need for foreign currency to resurrect our economy. Indian tariffs are very high. Most of the Indonesian products sold to India are raw materials and intermediate goods. We would like to diversify our export basket and include manufactures. Counter-trade mechanism, if implemented, could really prove immensely beneficial. It should also involve exchange of products with projects.

Can you identify the negative and positive factors that in your perception will discourage or encourage Indonesian companies from choosing India as an investment and trading destination, especially in the context of globalisation?
India and Indonesia hold similar views. WTO should ensure that trade liberalisation should be made an instrument for achieving economic development objectives of developing countries, enable them to utilise opportunities offered by free trade, compete in the world market and attract FDI.