Switzerland considers RI a priority country in Asia: Envoy

Veeramalla Anjaiah, The Jakarta Post, Jakarta | Thu, 02/19/2009 2:13 PM  

As the center of gravity of international politics and economics moves toward Asia, Switzerland, a tiny but prosperous European nation, has picked Indonesia as one of the priority countries in Asia to develop a new partnership with. 

"We have selected seven priority countries from all over the world in the context of our development cooperation for the period of 2008-2012. Indonesia is one of them," Swiss Ambassador to Indonesia Bernardino Regazzoni told The Jakarta Post during a recent interview at his office in Jakarta. 

The six other countries are Egypt, Ghana, Colombia, Peru, South Africa and Vietnam. 

All seven countries, Ambassador Regazzoni said, were presently enjoying rapid economic growth and striving toward greater integration into the global economy, and they boasted predominant positions in their respective regions. 

For instance, Indonesia, the largest economy in Southeast Asia, has recorded 6.1 percent economic growth in 2008 amid the global slowdown. 

But the seven countries still face huge problems in terms of poverty alleviation and development. 

"The priorities of our development cooperation with these seven countries lie in strengthening competitiveness and trade diversification of these countries, in mobilizing domestic and foreign investment, in improving basic infrastructure and promoting stable basic economic conditions," Regazzoni, the media-friendly ambassador, said. 

The Swiss Federal Council has already provided 800 million Swiss francs to the State Secretariat for Economic Affairs (SECO) to implement this program. 

There has been a flurry of activity in Switzerland's policies toward Indonesia, especially after Regazzoni took over as Swiss ambassador on July 25, 2006. 

"The most important thing in our bilateral relations is growing new Swiss foreign investments in Indonesia. It's amazing," Regazzoni said. 

"Our investments in Indonesia are much higher than our investments in India, South Korea, Malaysia and Vietnam." 

In 2006, Swiss companies in-vested US$500 million in the country, with another $250 million in 2007. In the first six months of 2008, the realized Swiss investments reached $21 million. 

In 2008, total foreign direct investment in Indonesia reached $14.87 billion, with Mauritius topping the list with an investment of $6.47 billion. 

Most Swiss investments are new, with more than 75 Swiss companies already operating in Indonesia in different sectors, including banking, chemicals, food, pharmaceuticals and insurance. 

"More and more companies are showing an interest in Indonesia. Our cumulative investments in Indonesia have already reached $3 billion. It will grow further in future," Regazzoni said. 

Bilateral trade between the two countries has also improved significantly. 

"Our bilateral trade has been witnessing double-digit growth. Last year, to our surprise, there was a significant increase in our imports of textiles, garments and footwear from Indonesia," Regazzoni said. 

Data from the Indonesian Central Statistics Agency (BPS) show bilateral trade valued at $668.90 million in 2007, a huge jump from the $339.38 million recorded in 2003. 

It seems the year 2008 will remain a milestone in the history of the trade between the two countries. In the first 10 months of 2008, trade surged to $907.03 million, a 64.40 percent increase from $551.74 million during the same period in 2007. 

Switzerland imports mainly textiles, garments, furniture, footwear, agricultural products like tea, coffee and cocoa from Indonesia, while it exports machinery, food, drugs, medical equipment and chemicals to Indonesia. 

Unlike Indonesia, Switzerland lacks abundant natural resources, thus making it rely of high-quality human resources to produce top-notch machinery, drugs, foods, precision tools and strong brands. 

"We also cooperate with Indonesia's National Agency for Export Development in the areas of fishing and seafood, agricultural products, handicrafts, educational toys, furniture and so on," Regazzoni said. 

The ambassador added there was another aspect that would strengthen bilateral relations even further. 

"Switzerland became a member of the Schengen area on Dec.12, 2008. Now we can issue Schengen visas valid for up to a three-month stay," he said 

"The visa will also will be valid for entry into the territory of all other Schengen member states. Indonesian passport holders with a valid Schengen visa can enter Switzerland without an additional Swiss visa." 

Both countries, Regazzoni said, were also mulling establishing a Joint Economic Commission to further strengthen the partnership.

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