INDONESIA, PORTUGAL VOW TO BOOST ECONOMIC TIES, PEOPLE-TO-PEOPLE CONTACT by Fardah

 Jakarta, Sept 29, 2014 (Antara) - President Susilo Bambang Yudhoyono made a historical visit to Portugal on September 18-20, 2014, less than a month before he ends his term in office after leading Indonesia for a decade.

        "Both countries have established new ties and found the spirit to further strengthen their cooperation," President Yudhoyono said in Lisbon.

        He observed that the bilateral ties between Indonesia and Portugal are "growing stronger," particularly after Portuguese President Anibal Cavaco Silva's Indonesian tour in 2012.

         President Silva praised Indonesia for holding an important position among the global communities.

        "This visit takes place 54 years after the first ever visit by an Indonesian president (President Soekarno in May 1960) to Portugal. Two years ago, I visited Jakarta, becoming the first ever Portuguese head of state to visit Indonesia," the Portuguese president was quoted as saying by LUSA.

         While declaring a new phase in the bilateral relationship between Portugal and Indonesia following the meeting with Yudhoyono, Silva emphasized the importance of boosting trade and investment between the two countries.

        "Through this visit, we have revived our relations, which were established five centuries ago," President Silva stated.

        Indonesia and Portugal have a long history that dates back to the 16th century when the Portuguese colonizers landed on Indonesian soil.

          In 1950, Indonesia and Portugal officially established diplomatic ties. These ties, however, were cut twice, in 1965 and 1975, for political reasons.

        In December 1999, the two governments decided to open a new chapter by resuming their diplomatic relations. The two countries have demonstrated a strong commitment to strengthening their ties; the frequent diplomatic visits to each other's countries being an indication of this effort.

         According to the Indonesian government data, since the resumption of diplomatic relations between Indonesia and Portugal on December 28, 1999, there has been a significant increase of 83 percent in the two-way trade -- from US$108.99 million to US$199.51 million, with Indonesia enjoying a trade surplus.

         Among Indonesia's exports to Portugal are tuna, shoe components, handicrafts, electronic products, computer components, furniture, plywood, plastic, kitchen utensils, coconut oil, spices and herbs, coffee, textiles, garments, natural rubber, fiber cloth and yarn.

       Indonesia's imports from Portugal include silk clothing, wine, dried fruit products, tanned leather, pharmaceutical products, and chemical products.

         Prior to Yudhoyono's departure for Portugal, Indonesian Presidential aide for international relations Teuku Faizasyah said in a press statement that the three-day visit was aimed at boosting cooperation in three priority areas: economy, people-to-people contact and enhanced connectivity.

         "Since the two nations had normalized their diplomatic ties in 1999, bilateral cooperation between Indonesia and Portugal have continued to increase, particularly during the term of President Yudhoyono's government," he stated.

          Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Suryo Bambang Sulisto, who was also a member of the Presidential entourage, said Indonesia's ties with Portugal could open up the trade and investment markets in South America and Africa too.

         "We can see that the strategic relations between Indonesia and Portugal can open the gates for us to enter (markets in) South America and Africa. This can be achieved through air connectivity," he noted.

         During the visit, Kadin and the Indonesian Embassy in Lisbon organized a business seminar attended by Portuguese businessmen and investors. Kadin invited them to invest and expand their business dealings in Indonesia.

          "The balance of trade might not be very large, at US$200 million per year, but it tends to increase, and that's good news," Sulisto said.

         Indonesian Ambassador to Portugal Surya Wirana said Indonesian businessmen should be able to benefit from the facilities provided by the Portuguese government to expand their businesses in Portugal.

          "We export thousands of tons of tuna to Portugal every month, which are canned and then re-exported to other countries. This can be a model for more joint ventures, and I hope President Yudhoyono's visit will boost cooperation to benefit both countries," he noted.

          President Yudhoyono's agenda in Portugal included holding bilateral meetings with President Silva and Prime Minister Pedro Passos Coelho and visiting the Mosteiro Jeronimos heroes' cemetery where Portuguese heroes such as Vasco de Gama and Luis Vaz de Camoes are buried.

         He also held a meeting with Portuguese House Speaker Maria Assuncao Esteves in the Parliament building and witnessed the signing of several cooperation agreements, including those in the fields of energy and mineral resources.

        Yudhoyono, at a joint press conference with Silva in Palacio de Belem in Lisbon on September 19, had said that the two countries had agreed to strengthen their cooperation in economic, investment, energy, infrastructure, fishery and maritime fields.

        He also touched on the efforts of both nations to increase their people-to-people contacts in, among other things, the cultural and tourism sectors.

         "We can also increase cooperation in interpersonal relations and cooperation among news agencies. We also agree to increase cooperation at the ASEAN and European Union levels," Yudhoyono added.

        They also discussed possible cooperation between Portugal, Indonesia, and East Timor.

         "We discussed the possibilities of cooperation with Portugal, Indonesia and Timor Leste. We can do a lot to help Timor Leste in the fields of democracy and economy," President Yudhoyono noted.

         President Silva said Indonesia, Portugal and Timor Leste have good relations. "That explains how we can assist Timor Leste in developing its economy," he said.

         East Timor, which was a Portuguese colony for more than 450 years, comprised the eastern half of Indonesia's island of Timor, located in the East Nusa Tenggara Province.

         The diplomatic ties of Indonesia and Portugal were severed following the Indonesian occupation of East Timor in 1975.

         Later, on August 30, 1999, in a UN-sponsored referendum, the majority of East Timorese voted for independence from Indonesia. In 1999, Indonesia and Portugal resumed diplomatic ties after resolving the East Timor issue.        
   Following a UN-administered transition period, East Timor was internationally recognized as an independent nation on May 20, 2002. Indonesia and Portugal are fully aware that connectivity between the two countries is crucial to help boost bilateral ties and intensify cooperation in various fields.

         Garuda CEO Emirsyah Satar, who was a member of the presidential entourage during the visit to Portugal, told the press in Lisbon that Indonesian flag carrier Garuda and the Transportes Aéreos Portugueses (TAP) held discussions on the airways cooperation between the two countries, but they still needed the involvement of the transportation ministries of both countries to discuss the service agreement.

          "This cooperation will allow connectivity between Lisbon and Jakarta. While the connectivity cooperation (has been arranged) between Garuda and TAP, the co-chair scheme must have approval (from the governments of both countries), hence we will discuss the service agreement with the transportation ministries," he said.

         The connecting flight will be operated as an extension of the Jakarta-Amsterdam flight with Garuda's airplanes, and the Amsterdam-Lisbon flight will continue with TAP's airplanes.

         Before leaving for New York on September 20, Yudhoyono received the Golden Key to Lisbon City, Portugal, to symbolize the friendship between the capital cities of Jakarta and Lisbon.

           "I hope that President Yudhoyono will promote culture and cooperation between the two cities," stated Lisbon Mayor Antonio Costa.

         In response, Yudhoyono remarked, "I accept this Golden Key of Lisbon City as a symbol of our readiness for greater cooperation between both countries and between both cities."
   He stated that Lisbon has great historical importance as the city where world exploration initiatives began, leading it to pioneer major global expeditions and create contacts between Europe and Asia. ***1***
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