Indonesia taking steps to revive economy, says envoy

INDONESIA plans to take a series of active steps to revive its economy which has been hit hard by the Covid-19 pandemic and promoting the promising digital sector is going to be a key part of these efforts.

It also wants to revitalise the tourism sector as it is an important part of the economy and is a significant contributor to job creation in the country, says Indonesia's ambassador, Suryo Pratomo, in an exclusive interview with The Business Times on the occasion of his country's Independence Day on Aug 17.

"To revitalise tourism industries, the Government of Indonesia has provided financial support and launched the Clean, Health, Safety, and Environment certification programme. On top of that, as part of the preparation for possible travel bubble arrangement with Singapore and other countries, the Indonesian government has ramped up vaccination on Batam, Bintan, and Bali," he adds.

Latest data from Indonesia's Ministry of Tourism and Creative Economy shows that last year as many as 6,626 business units spread across 34 provinces of the country obtained the Certification of Hygiene, Health, Safety, and Environmental Sustainability (CHSE). The target is for another 6,300 businesses to get the CHSE this year with a total budget of Rp 62 billion (S$5.8 million) allocated for financial support.

"All these preparation and border reopening projects will be taking into consideration how effective the efforts to curb the spread of Covid-19 have been in various regions. Indonesia has a number of entry points through which foreign travellers may enter, such as Batam which had regular ferry links to Singapore, Bali that had direct flights to several countries, and Manado in North Sumatra that is linked by air with China," Mr Suryo Pratomo.

Foreign arrivals in Indonesia dropped by a huge 75 per cent from 16.11 million in 2019 to just 4.02 million last year. This was a hard blow to a tourism economy that accounted for 5.7 per cent of the country's gross domestic product and provided 15 million jobs in 2019. Foreign exchange earnings are projected to have dropped 81 per cent to US$3.2 billion last year from US$16.9 billion earned in the year before.

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Turning to the current global focus on the critical issue of climate control, Mr Suryo Pratomo says that while Indonesia is considered to be dependent on coal and other natural resources, it is also joining the battle of climate change as a member of the global community.

"Indonesia is serious about controlling climate change and looks forward to working closely with its partners to take concrete actions on this matter as tackling climate change is in Indonesia's national interest. In this regard, the Government of Indonesia has adopted policies, implemented empowerment projects, and is carrying out law enforcement as a result of which Indonesia's current deforestation rate has fallen to the lowest in 20 years," he says.

"We also hope to promote green development for a better world, and for that purpose, Indonesia has updated its nationally determined contribution to increase adaptation capacity and climate resilience."

Nationally determined contributions (NDCs) are at the heart of the Paris Agreement and the achievement of its long-term goals. NDCs embody efforts by each country to reduce national emissions and adapt to the impacts of climate change.

Moreover, as Indonesia believes that the global partnership must be strengthened it welcomes the 26th UN Climate Change Conference of the Parties (COP26) to be hosted by the United Kingdom in the Scottish city of Glasgow from Oct 31 to Nov 12 this year. The COP26 summit will bring parties together to accelerate action towards the goals of the Paris Agreement and the UN Framework Convention on Climate Change for an implementable and balanced outcome, says the ambassador.

Indonesia also has a national energy policy to have 23 per cent of its total primary energy supply generated by modern renewable sources by 2025 and 31 per cent by 2050. It hopes to accelerate this process rapidly and looks forward to working closely with its partners.

"I am pleased that Singapore's Sembcorp has been taking part in this regard," notes the Indonesian envoy. "We, at the Embassy of Indonesia, have facilitated the establishment of such cooperation between Sembcorp and Indonesian energy group - Suryagen, as well as other investors to build solar farm projects in East Nusa Tenggara and Batam. This is one of the concrete projects where our two countries are working collaboratively to expand the use of renewable energy."

Mr Suryo Pratomo says that the coronavirus pandemic has significantly accelerated digital transformation in companies in Indonesia, in Singapore, and countries across the globe.

"Over the past 18 months, we have seen years-long digital transformation road maps compressed into days and weeks in order to adapt to the new normal as a result of Covid-19," he adds.

"Even before the pandemic swept the world, the global economy was rapidly changing, pushed largely by advancements in digital technologies, such as advanced analytics, robotics and automation, the Internet of Things (IoT), and artificial intelligence.

"I always believe that this digital transformation should also be accompanied by the development of a strong and viable digital ecosystem that comprises stakeholders, system, and an enabling environment - that together empower people and communities to use digital technology to access services, engage with each other, and pursue economic opportunities."

To establish a strong digital ecosystem, Indonesia plans to strengthen three aspects namely: infrastructure, access, and use; digital rights and governance; and digital economy.

"I am pleased to acknowledge that Indonesia and Singapore have been working very closely on these aspects. The Nongsa Digital Park is one of many projects that has been developed. Indonesia has also adopted a number of regulations on this matter," says Mr Suryo Pratomo.

Since taking over as the Indonesian ambassador in Singapore, besides organising online briefing and discussion events, he is also focusing the embassy's operations on establishing one-on-one relations. "As such, in cooperation with the Singapore Business Federation (SBF) we have launched the so-called Business Connect programme every Wednesday at the Embassy of Indonesia. We hope to meet and respond directly to business entities. Of course, we will adjust accordingly on the number of people that can attend the meeting.

"Speaking of business, I always believe that there are endless opportunities in Indonesia - we have plenty of natural resources, we have big markets, and we have a young population. But given the current situation, I wish to suggest that businesses can look further into agritech, food industries, medical advancement, digital industries, energy including renewable industries, as well as education including on vocational and reskilling training."

Having been an active journalist for more than 30 years, Mr Suryo Pratomo believes that people-to-people ties are always the backbone of bilateral relations. "Stronger people-to-people ties will not only ensure that the two neighbours remain close and have a robust bilateral relationship, but also help maintain stability in the region amid tensions," he says.

"I will also focus on initiating and revitalizing programmes that will bring people from both countries together such as the young leaders' exchange programme, joint military exercises, film festivals, Dharmasiswa scholarship, familiarisation trip programmes, etc."

Darmasiswa is a scholarship programme that is offered to all foreign students from countries which have diplomatic relations with Indonesia to study Bahasa, art and culture. Participants can choose one of the selected universities located in different cities in Indonesia. The programme is organized by the Ministry of Education and Culture in cooperation with the Ministry of Foreign Affairs.

"I have been a journalist for more than 30 years. Perhaps one particular characteristic that I continue to cherish and enjoy until now as an ambassador is that I have been blessed to always meet new people from different backgrounds and interests, new friends, and learning new things and new places," he says.

"I wish that with my present job and previous work, I can always be a bridge for cooperation and friendship, not only among people, but now among countries."