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blu-bulilit.gif (911 bytes) COUNTRY PROFILE: REPUBLIC OF INDONESIA
blu-bulilit.gif (911 bytes)

OVERVIEW OF PHILIPPINES-INDONESIA RELATIONS

blu-bulilit.gif (911 bytes) PHILIPPINE – INDONESIA TRADE RELATIONS
blu-bulilit.gif (911 bytes) THE FILIPINOS IN INDONESIA
blu-bulilit.gif (911 bytes) CHRONOLOGY OF PHILIPPINES-INDONESIA RELATIONS
blu-bulilit.gif (911 bytes) PROFILE OF THE INDONESIAN CHAMBER OF COMMERCE AND INDUSTRY
blu-bulilit.gif (911 bytes) DO'S AND DONT'S

COUNTRY PROFILE: REPUBLIC OF INDONESIA
 PEOPLE

Population : 228,437,870 (July 2001 est.)

Ethnic Groups : Javanese 45%, Sudanese 14%, Madurese 7.5%,

Coastal Malays 7.5%, Other 2.6%

Official Languages : Bahasa Indonesia (official), Dutch, English, and local dialects, the most widely spoken of which is Javanese

Major Religions : Muslim (88%), Protestant (5%), Roman Catholic (3%), Hindu (2%), Buddhist (1%), Other (1%) - (1998)

GEOGRAPHY

Area : 1,919,440 sq. km.

Location : South Eastern Asia, archipelago between the Indian Ocean and the Pacific Ocean

Neighbors : Malaysia, Papua New Guinea and Australia

Capital : Jakarta

 GOVERNMENT

Type : Republic

Head of State : H.E. Megawati Soekarnoputri

Head of Government : Head of state is also the head of government

Foreign Minister : H.E. Noer Hassan Wirayuda

 ECONOMY

Major Industries :    Petroleum and natural gas, textiles, apparel and footwear, mining, cement, chemical fertilizers, plywood, rubber, food tourism

Electricity Production : 78.674 billion kWh (1999)

Labor Force : 99 million (1999)

FINANCE

Monetary Unit : Indonesian Rupiah

GDP growth : 4.0% (as of August 2001)

GNP per Capita (Nom) : US$692 (as of August 2001)

Exports : US$66.2 billion (as of August 2001)

Imports : US$40.4 billion (2000 est.)

Current Account

Balance : US$7.8 billion (as of August 2001)

Reserve excl. Gold : US$22.5 billion (as of August 2001)

COMMUNICATIONS

Telephones (main lines) : 5,588,310 (1998)

Telephones (mobile) : 1.07 million (1998)

Television sets : 13.75 million (1997)

Radios : 31.5 million (1997)

 TRANSPORT

Railways : 6,458 Km.

Ports and Harbors : 8

Airports : 453 (2000 est.)

HEALTH

Life Expectancy : 68.27 years

Birth Rate : 22.26 births/1,000 population (2001 est.)

Death Rate : 6.3 deaths/1,000 population (2001 est.)

Infant Mortality Rate : 40.91 deaths/1,000 live births (2001 est.)

EDUCATION

Literacy : 84%

INTERNATIONAL ORGANIZATIONS PARTICIPATION

APEC, ARF, AsDB, ASEAN, CCC, CP, ESCAP, FAO, G-15, G-19, G-77, IAEA, IBRD, ICAO, ICC, ICFTU, ICRM, IDA, IDB, IFAO, IFC, IFRCS, IHO, ILO, IMF, IMO, Inmarsat, Intelsat, Interpol, EnIOC, IOM (Observer), ISO, ITU, NAM, OIC, OPCW, OPEC, UN, UNCTAD, UNESCO, UNIDO, UNIKOM, UNMIBH, UNMDP, UNMOT, UNOMIG, UPU, WCG, WFTU, WHO, WIPO, WMO, WtoO, WtrO.

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OVERVIEW OF PHILIPPINES-INDONESIA RELATIONS

Current State of Relations

Diplomatic relations between the Philippines and Indonesia were established on 24 November 1949. But even before the establishment of formal relations, friendly relations existed between the Philippines and Indonesia. President and Mrs. Manuel L. Quezon visited then Batavia now in Jakarta in 1934, 1936, and 1938.

Other Philippine Presidents have visited Indonesia. It may be noted that former President Fidel V. Ramos visited Indonesia three times - first on a state visit in 1993, again in 1994 to attend the APEC Economic Leaders Meeting in Bogor, and in 1996 to attend the First ASEAN Informal Summit. President Joseph Ejercito Estrada visited Batam, Indonesia, on 13 October 1998.

On the other hand, both President Sukarno and President Soeharto have also visited the Philippines on several occasions. President Abdurrahman Wahid visited the Philippines thrice in his 21-mounth presidency, twice in November 1999 and once in June 2001. President Megawati Soekarnoputri had just visited the Philippines on 21-22 August 2001

The two countries normally share the same views/position/stand on various regional and international political and economic issues.

Importance of Indonesia to the Philippines

Indonesia, the largest archipelago in the world, with a land area of about 1.9 million sq. km. and a sea area four times as big and with a population of over 200 million, has the largest Muslim population in the world and naturally wields considerable influence. It is Southeast Asia's largest and most influential nation. It has half the population and more than half the resources of ASEAN. Indonesia is an accepted and well-respected leader among developing countries. The Philippines was accepted as a member of the Non-Aligned Movement (NAM) in 1992 when Indonesia sat as NAM Chairman. Indonesia has consistently espoused south-south cooperation. Indonesia played a crucial role in the conclusion of the Government of the Republic of the Philippines-Moro National Liberation Front (GRP-MNLF) Agreement in 1996. Philippines-Indonesia relations have gained vigor through the two countries' active participation and commitment to ASEAN, APEC, ASEM, and the BIMP-EAGA.

RP-Indonesia Bilateral Trade

Total trade between the Philippines and Indonesia for the year 2000 was valued at US$ 825 million, the same as in 1999. Philippine exports, totaling US$183 million, increased by 48% as against last years US$ 123 millions. On the offer hand, Philippine imports from Indonesia, amounting to USS$ 642 million, decreased by 8.5%. This slightly improved the Philippines trade deficit with Indonesia by 20% in 2000, which stood at US$459 million. Nevertheless, this is a continuity of the Philippines’ chronic trade deficit with Indonesia, which, for the past five years (1996-2000), has reached a total of US $2.5 billion.

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PHILIPPINE – INDONESIA TRADE RELATIONS

RP-Indonesia Merchandise Trade

(in million US$)

YEAR

EXPORTS TO INDONESIA

IMPORTS FROM INDONESIA

TOTAL TRADE

BALANCE OF TRADE

1994

72

365

437

(293)

1995

129

575

704

(446)

1996

142

645

787

(503)

1997

214

694

908

(480)

1998

111

591

702

(480)

1999

123

702

825

(579)

2000

183

692

875

(509)

Jan-July 2001

79

412

491

(333)

Source: Bureau of Export Trade Promotion

 

TOP TEN PHILIPPINE EXPORTS TO INDONESIA (2000)

(in US$)

PRODUCT

VALUE

% SHARE

Total Exports To Indonesia

183,475,864

100%

  1. Machineries/Transport Equipment/
  2. Apparatus and Parts

54,294,035

29%

  • Electronics

32,228,988

17%

  • Processed Foods

21,294,827

12%

  • Chemicals

16,932,800

9%

  • Coconut Products (Coconut Oils)

16,389,331

9%

  • Petroleum Products

6,850,841

4%

  • Garments

4,334,349

2%

  • Textile Yarns, Twine And Cordages

3,783,512

2%

  • Marine Products

3,519,078

2%

  • Fresh Foods

1,997,984

1%

Source: Bureau of Export Trade Promotion

TOP TEN PHILIPPINE IMPORTS FROM INDONESIA (2000)

(in US$)

PRODUCT

VALUE

% SHARE

Total Imports From Indonesia

692,691,950

100%

1. Chemicals

118,543,296

17%

2. Mineral Products

82,649,521

12%

3. Machineries/Transport Equipment/    Apparatus and Parts

75,191,244

11%

4. Electronics

59,295,747

8%

5. Other Consumer Manufactures

53,357,742

8%

6. Processed Foods

40,386,853

6%

7. Construction Materials

40,348,154

6%

  1. Petroleum Products

39,061,333

6%

  • Textile Yarns, Twine and Cordages

37,925,219

5%

  • Metal Manufactures

27,301,461

4%

Source: Bureau of Export Trade Promotion

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THE FILIPINOS IN INDONESIA

I. General Profile

Indonesia hosts about 4,800 overseas Filipino workers and their dependents. Most of the Filipinos working in Indonesia are highly skilled professionals, performing supervisory, technical advisory and executive positions in their respective companies. The Filipinos are very well regarded in Indonesia because of their high level of competence and degree of professionalism. One can name an industry in Indonesia and is very likely that the leading companies in that particular industry are employing Filipino professionals – be it in banking, auditing and consulting services, securities, hotel, advertising, consumer products, garment, mining, pulp and paper, timber, and oil and gas industries.

Likewise, Filipino executives are found in various international organizations based in Indonesia. Filipino teachers are also employed in international and English-speaking schools in Indonesia. A few Filipino artists have made Indonesia as their base.

In terms of profession, there are more overseas Filipinos in Indonesia whose backgrounds are in auditing and finance-related services. SGV & CO., the leading auditing firm in the Philippines, used to have a branch office in Indonesia. The firm quickly established a solid reputation as a pool of competent Filipino professionals, showcasing the professional skills of the Filipinos in general. Soon thereafter, the Filipinos became much sought after by many Indonesian companies.

The Indonesian government does not monitor the number of overseas Filipino workers in Indonesia per type of work. However, based on the Philippine Embassy’s 1999 – 2000 records, the distribution of Filipino professionals in Indonesia according to their specific jobs (out of sample size of 477 principals) is as follows: technical advisors/consultants – 25%; finance manager/controller/

accountant/advisor – 20%; manager/general manager – 16%; engineers/quality controller/supervisor/technician/inspector – 27%; academic coordinator/teachers – 8%; and president director/managing director/chief executive officers – 5%.

Filipino Organizations

At present, there are eight existing associations of Filipinos in Jakarta. Three of these groups have sports orientation, two have religious interest, one is a profession-based organization, another is an all-women organization, and the last is a group of Filipinos who are married to Indonesian nationals. The names of these organizations are as follows:

    1. Sports oriented organizations:
    • Filcomin - Bowling
    • Filcomin - Golf
    • Filcomin - Tennis
    1. Religious oriented organization:
    • Couples for Christ (Expatriate Chapter)
    • Genesis Catholic Community
    1. Profession-based organization
    • Association of Filipino Educators in Indonesia
    1. Others:
    • Philippine Women’s Association
    • Indonesian-Filipino Association

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CHRONOLOGY OF PHILIPPINES-INDONESIA RELATIONS

1949

24 November Diplomatic relations between the Philippines and Indonesia are established.

27 December The Philippines formally accords de jure recognition to the Republic of Indonesia.

1951

28 January   President Sukarno arrives in Manila for a seven-day official visit.

21 June A Treaty of Friendship is signed in Jakarta.

1952

16 July President Quirino arrives in Jakarta for a ten-day official visit.

1956

14 May President Sukarno arrives in Manila for an official visit.

1959

28 April A Cultural Agreement is signed in Manila.

1960

22 September President Sukarno makes a brief stopover in Manila on his way to the United Nations in New York.

1963

23 May President Sukarno arrives in Manila for a three-hour stopover enroute to Tokyo.

29 May The Exchange of Notes on an Agreement on the Aboiltion of Visa Requirements on Certain Cases is done in Manila.

25 July An Agreement on Naval Liaison is signed in Manila.

29 July President Sukarno arrives in Manila for a tripartite summit with the Philippines and Malaya.

1964

6 January President Sukarno arrives in Manila for a five-day official visit.

22 February President Macapagal arrives in Jakarta for a seven-day state visit.

5 May President Sukarno arrives in Manila for a brief stopover on his way to Tokyo.

13 June President Macapagal arrives in Tokyo to attend a tripartite meeting with Indonesian President Sukarno and Malayan Prime Minister Tungku Abdul Rahman.

1965

14 September A Border Crossing Agreement between the Philippines and Indonesia is signed in Manila.

1967

21 February An Exchange of Notes on the Agreement relating to the Establishment of the Two-Way Radio System on a Reciprocal Basis is done in Jakarta.

1968

12 January  President Marcos arrives in Jakarta for a three-day state visit.

1969

30 May An Agreement on Coconut and Coconut Products and an Agreement on Shipping Matters is signed in Manila.

1972

13 January   President Soeharto arrives in Manila for a two-day visit.

24 March An Air transport Agreement is signed in Manila.

1974

5 April President Marcos arrives in Jakarta for a state visit.

29 May President Marcos arrives in Menado, North Sulawesi, Indonesia for informal talks with President Soeharto.

8 August The following agreements are signed in Jakarta:

Agreement on Border Trade

Agreement on Coconut and Coconut Products

Basic Agreement on Economic and Technical Cooperation

Agreement on Fisheries

Agreement on Forestry

Agreement on Scientific and Technical Cooperation

Trade Agreement

1975

20 February The Philippines, through the Philippine National Oil Co., signs an agreement with Pertamina of Indonesia for the purchase of a substantial quantity of crude oil.

11 March A Confidential Border Patrol Agreement and a Confidential Revised Agreement on Border Crossing is signed in Jakarta.

1976

17 January        President Marcos arrives in Jakarta on a brief stopover.

10 February An Extradition treaty is signed in Jakarta.

22 February President Marcos arrives in Bali to attend the ASEAN Summit Meeting.

1979

17 July President Soeharto arrives in Manila for a 21-hour visit.

1980

25 October President Marcos receives Major General Piet Haryono, personal emissary of Indonesian President Soeharto, in Malaca´┐Żang.

1981

18 June An Agreement for the Avoidance of Double taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income is signed in Manila.

1986

24 August    President Aquino arrives in Jakarta for a three-day state visit.

26 August    A Memorandum of Understanding on Trade, Investment, Handicrafts and Shipping is assigned in Jakarta.

1987

14 December President Soeharto arrives in Manila to attend the Third ASEAN Summit Meeting.

1993

20 September President Fidel V. Ramos arrives in Jakarta for a five-day state visit.

21 September A Memorandum of Understanding between DOTC Philippines and PTPT Indonesia on the Cooperation of Direct Postal Services is signed in Jakarta.

An Agreement for the Avoidance of Double taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income is signed in Jakarta. It supercedes the agreement signed in Manila on June 18, 1981.

1996

24 November President Soeharto of Indonesia arrives in Manila to attend the APEC Leaders Meeting.

1998

13 October President Joseph E. Estrada arrives in Batam Island, Indonesia for private talks with President B.J. Habibie.

2001

29 June President Abdurrahman Wahid arrives in Manila for a one-day working visit.

20 August President Megawati Soekarnoputri arrives in Manila for a one-day state visit. The Philippines is her first stop on a nine-nation tour of ASEAN.

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PROFILE OF THE INDONESIAN CHAMBER OF COMMERCE AND INDUSTRY

Indonesian Chamber of Commerce and Industry or Kadin Indonesia was officially established in 1968 as a result of the joint efforts by business and government leaders of the Republic of Indonesia.

According to the Law Number One Year 1987, all businessmen, business enterprises and business associations are under the auspices of Kadin Indonesia. The private sector, cooperative and public enterprises as well, are parts of Kadin Indonesia.

Kadin Indonesia serves as a forum and a facilitator for promoting and enhancing the vital roles of businessmen in Indonesia, increasing business interaction and enhancing regional economic growth.

Kadin Indonesia directs its activities to bridging the gaps which exist among the entrepreneurs and functions as a mediator between business communities and the government.

With economic cooperation as one of its main focus, Kadin Indonesia regularly holds various kinds of meetings, workshops, issues publications and establishes an information network to facilitate contact and exchange of information among businessmen. Indonesia has bought thousands of business leaders and key entrepreneurs from all parts of the world into personal contracts, business meetings and one on one meetings.

Kadin Indonesia provides direct services to 26 provincial chapters and more than 300 regencies branches. It is constantly reviewing its activities to be relevant to the situation. Over 200 business associations are part of the Chamber structure.

To coordinate its activities with other countries or region. Kadin Indonesia establishes communities, bilateral or multilateral, and forms linkages and collaborates with key regional and international groups and chambers, both private and governmental, whose objectives and purposes are similar to its own.

The governing body of Kadin Indonesia is the Board of Executives, which is elected for a term of five years, and composed of the President, Vice Presidents and Chairmen of compartments. The President serves as the Chief Executive and presiding officer of Kadin Indonesia. The Board of Executives appoints a Director Executive who is assisted by directors, for the operations of the Secretariat. The current President (1999-2000) is Mr. Aburizal Bakrie.

There is a Council of Governors whose members include the representatives of private sector, cooperatives and public enterprise. It suggests measures for the improvement of the organization and its structure and offers solution to problems whenever they arise. An Advisory Council, has the task to cultivate and develop clean, transparent and professional business.

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DO'S AND DONT'S

Indonesians make allowances for western ways, especially in the main tourist areas, but there are a few things to bear in mind when dealing with people.

Never hand over or receive things with the left hand. It will cause offense – the left hand is used to wash after going to the toilet and is considered unclean. To show great respect to a high-ranking or elderly person, hand something to them using both hands

Talking to someone with your hands on your hips is impolite and is considered a sign of contempt, anger or aggression.

Many Asians resent being touched on the head – the head is regarded as the seat of the soul and is therefore sacred. In Javanese culture, traditionally a lesser person should not have their head above that of a senior person, so you may sometimes see Javanese duck their heads when greeting someone, or walk past with dropped shoulders as a mark of respect.

The correct way to beckon to someone is with the hand extended and a downward waving motion of all the fingers (except the thumb). It looks almost like waving goodbye. The western method of beckoning with the index finger crooked upward won’t be understood and is considered rude. It is fine to point at something or to indicate direction, but rude to point at someone – gesture with the whole hand.

Handshaking is customary for both men and women on introduction and greeting. It is customary to shake hands with everyone in the room when arriving or leaving.

Hospitality is highly regarded, and when food or drink is placed in front of you, wait until asked to begin by your host, who will usually say silahkan (please). It is impossible to refuse a drink.

While places of worship are open to all, permission should be requested to enter, particularly when ceremonies or prayer are in progress, and you should ensure that you’re decently dressed. Always remove footwear before entering a mosque. When entering someone’s house it is polite to remove your shoes.

During the month of Ramadan, Muslims fast from sunup to sundown. Non-Muslims are therefore requested to strictly refrain from eating and smoking publicly from 4:00 a.m. to 6:00 p.m.

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