On 1 December, LIPI hosted jointly a workshop with the Taiwan ASEAN Studies Center of Chung-Hua Institution for Economic Research (CIER) on the Indonesia-Taiwan relations in Seruni Room, Santika Premiere Hotel, Jakarta. This workshop successfully concluded the joint team work of LIPI and CIER on the joint study of ‘the dynamic and current status of Indonesia-Taiwan relations’. The coordinators of both teams suggested that Taiwan and Indonesia authorities shall consider the policy option of an Economic Cooperation Arrangement (ECA), where most participants coming from government officials, scholars and representatives from industrial groups echoed with them.
Before the welcome remarks by Prof. Dr. Syamsuddin Haris (Head of Research Center for Politics, LIPI), Mr. Andrew Hsia (Representative of Taipei Economic and Trade Office) briefed the current Indonesia-Taiwan bilateral relations and the prospects. Since he was assigned to Jakarta two years ago, bilateral relations have been substantially extended. He trusted the potentials for bilateral relations will be enhanced with mutual efforts.
The coordinators from both research teams reflected the main points and findings of this joint study to encourage both Taiwan and Indonesia authorities to consider the ECA feasibility study. Dr. Adriana Elisabeth (LIPI) and Miss Chaw-Hsia Tu (CIER) illustrated the close trade relations based on complementary nature in general and assessed the problems and potentials in various fields including SMEs, human resources, electronics and automotive industries, and agriculture. Distinguished discussants from Indonesia and Taiwan were invited from academia and the government officials. Mr. Edy Putra Irawady, Deputy of Industry and Trade Coordination, opined that both sides shall seek to extend cooperation within multilateral frameworks in which both sides have taken part, such as APEC and WTO. Dr. Tirta Mursitama, lecturer of Universitas Indonesia, proposed that enhancing bilateral relations shall take place in a more creative manner beyond the traditional diplomacy.
Two discussants from Taiwan looked at Indonesia-Taiwan relations in a positive way. Mr. William Liu, a negotiator from Ministry of Economic Affairs, illustrated the bilateral investment relations within the regional context and highlighted the ways to enhance Taiwan’s outward investment to Indonesia. Professor Chen Tain-Jy, an economist from National Taiwan University, addressed the region-oriented FDI for economic development and its prospective impacts for Indonesia. While many Taiwan businessmen are now looking for a new production base in Asia, the Indonesia-Taiwan economic integration will attract more Taiwan’s investment to Indonesia.
Several participants and representatives from various government sectors expressed their opinions in this regard. Most of them opined that the continuation of economic cooperation within a prospective ECA framework will be mutually beneficial. For instance, Professor Thee Kian Wie, a leading economist, highly commended the achievements of Taiwan’s SMEs. Without the consolidation of its SMEs, Indonesia’s economy will not be developed. His argument was echoed by an official from the Office of SMEs in Indonesia that Taiwan’s technical assistance and capacity building measures have been useful for Indonesia such as ADOC and One Village One Product (OVOP). Former Indonesian Ambassador also stressed that political sensitivity shall be excluded in this proposal for economic cooperation, as Taiwan already has the ECFA with mainland China.
This joint workshop successfully concluded the collaborative work of LIPI and CIER on the dynamic and current status of Indonesia-Taiwan relations. This joint study shows the close trade and investment relations between Indonesia and Taiwan will be further strengthened by institutional arrangements. Both research teams recommend a comprehensive feasibility study on the Economic Cooperation Arrangement (ECA) between Indonesia and Taiwan be carried out in the near future. It is also recommended that bilateral institutional arrangements such as ECAs shall be taken by policy makers in Indonesia and Taiwan.
(This event is also published on the LIPI website.)
Photo: Joint LIPI-CIER workshop on Indonesia-Taiwan relations, 2011/12/1, Jakarta, Indonesia.
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