Pakistan as a gateway to Central Asia, South Asia & Middle East is a huge potential market for Indonesian investors: Ambassador Tugio
An exclusive interview with Indonesian Ambassador Adam Mulawarman Tugio
Naveed Ahmad Khan & Muhammad Arshad
Islamabad:Indonesian Ambassador to Pakistan H.E Adam Mulawarman Tugio is a senior experienced diplomat of Indonesia and has held a number of important diplomatic positions in different countries including the United State of America and the United Kingdom.
He has deep knowledge and awareness of the challenges of current national and International situations. He also has a vision to resolve these challenges and turn them into opportunities.
Recently the team of Daily The Spokesman conducted an Exclusive interview of His Excellency Adam and discussion on current economic situations and tourism promotion. Following is an edited account of that interview:
- How would you like to describe brotherly diplomatic ties between Pakistan and Indonesia?
The diplomatic ties between the two countries are both cordial and historic, which were established soon after the independence of Pakistan. The marked features of this two-way friendship are mutual trust, common interests and goodwill. The top leadership of both sides highly value this fraternal relationship and always endeavor to transform it into productive cooperation in various potential domains of mutual interest. During these seventy years of brotherly relationship, we have successfully maintained a positive momentum of growth with significant developments in political, economic and defence ties. With its unique geo-strategic position, Pakistan is a trusted friend and partner for Indonesia in the South Asian region and we desire enhanced bilateral cooperation at the regional and multilateral forums. As the two biggest Muslim majority countries, we have continued to support each other in our common pursuits of promoting socio-economic progress and global peace and security and willwork together in promoting the interest of Ummah in global world, and on global issues of shared concern such as climate change and addressing the pandemic.
- What sort of measure would you like to propose for further strengthening the existing relations between both the countries?
I believe that there are three important areas that need consistent engagement as they would solidify the existing foundation of bilateral relations; trade, building cultural bridges through education and tourism. On trade, we commend the Naya Pakistan vision of PM Imran Khan which prioritizes Pakistan’s geo economic importance as a gateway to Central Asia, South Asia and Middle East. With a combined population of 1.95 billion in South Asia and 75 million in Central Asia, there exist a huge potential market for the Indonesian investors and we are keen to explore it for expanding our export to these regions through Pakistan.In order to expand bilateral trade, the Indonesian Embassy has continued to engage the Pakistani business sector through virtual seminars, E-meetings, and business forums.
WITH A POPULATION AROUND 623 MILLION & $2.5
TRILLION GDP, ASEAN provides Pakistan with a valuable chance to expand exports: Indonesian diplomat
In education, the connectivity and strengthening of linkages between the academics, students and universities of the two countries is another area of importance. The educated youth is a valuable source of developing friendships and promoting useful interaction.We have organized virtual workshops for the students, facilitated signing of MoUs between the universities, arranged webinars with the scholars and leading academics of both sides to disseminate information and to bridge the gaps. I am pleased to learn that many students from Pakistan are now studying in the best Indonesian universities and the number of Indonesian government scholarship recipients from Pakistan has been increasing during the last three years. Finally on tourism, I would say that Pakistan is blessed with abundant natural beauty and only needed to develop required infrastructure to attract more visitors. Likewise, we encourage Pakistani friends to explore the natural beauty and diverse culture of Indonesia. There are several similarities in culture and cuisine of Indonesia and Pakistan, which need to be appreciated and enjoyed. For instance, Pakistani food lovers can easily find many dishes in Indonesia, which are quite similar in taste to Pakistani cuisine.
- What of cooperation between both the countries Indonesia expects in coming years and how ?
The expansion of bilateral trade activities and reinvigorating business interest is one of my top priorities. In my meetings with the Pakistani business community, I have tried to urge them not only to focus on Indonesia but also on Southeast Asian region as a whole for new business opportunities and commercial linkages. With a combined population of close to 623 million people and a GDP of around $2.5 trillion dollars, ASEAN is a significant market for Pakistani goods. Indonesia’s GDP alone is worth a trillion dollars, and ASEAN is swiftly establishing itself as the next global economic hub. Indonesia and Pakistan, with a combined population of almost half a billion people are the two fastest-growing countries with the most young and brilliant people. I believe that the scope of business prospects is enormous supported by amicable diplomatic relations. It is time to take action and mobilize our resources to untap the business potential. I have also emphasized on many occasions that the two-way trade needs to be diversified while simultaneously narrowing the trade balance.
4.What role Indonesia expects from Pakistan within the framework of ASEAN ?
In view of current geo-economic and geo-strategic issues, as well as the creation of new regional alliances, building a mutually beneficial and comprehensive partnership between ASEAN and Pakistan is critical from an Indonesian perspective. The Asia-Pacific region’s fast-growing economy provides Pakistan with a valuable chance to expand its exports and connections. Since 1993, Pakistan has been an ASEAN Sectoral Dialogue Partner and a member of the ASEAN Regional Forum since 2004. We continue to support Pakistan’s bid to join ASEAN as a Full Dialogue Partner. Meanwhile, I believe the two parties may begin working together to implement sectoral cooperation indicated in the Practical Plan of Action by focusing on “low hanging fruit” cooperation. We may supplement this institutional approach by strengthening bilateral engagement between Pakistan and individual ASEAN members, therefore synchronizing the whole collaboration and consultation process.This, I believe, would be consistent with Pakistan’s Vision East Asia strategy and geo economic vision.
- In which sectors Pakistani investors can invest in Indonesia?
In my view, the investor friendly policies of the Indonesian government offer lucrative opportunities for the Pakistani business sector. Indonesia has designated six priority sectors for investment namely health, electronics, renewable energy, infrastructure, automotive, and mining.There is a promising future in these prospective sectors for investment since these industries have shown strong continuous growth in the recent years. Moreover, improvements in regulations together with reforms as reflected in simpler policy execution have produced a more favorable business climate for investors.
- What elements can contribute towards increasing economic activity between Indonesia and Pakistan? How do you see existing trade and economic cooperation between the two countries?
Pakistan continues to be a very important trading partner for Indonesia in the South Asian region. The presence of political stability, strong democratic norms, developing infrastructure and special economic zones, educated youth, rising middle class and changing regional geo-strategic situation in both Indonesia and Pakistan are strong contributing factors in the direction of expanding economic activity. It is encouraging to see the positive trend in bilateral trade. We are aware of problems in reducing trade deficit and trade barriers that could hinder commercial trade and hope that the establishment of Indonesia Trade Promotion Center (ITPC) in Karachi would help in resolving this issue and facilitating more commercial engagements in the future.
- How can CPEC play an important role in increasing economic activity and trade relations between Pakistan and Indonesia?
The CPEC is considered as a game changer to support economic growth and regional connectivity for Pakistan. Similarly, the Belt and Road Initiative (BRI) project has developed connectivity with the countries in the ASEAN region. These projects offer tremendous opportunities of market integration, infrastructure development and global trade linkages for both the countries. The advancement of the CPEC project is quite attractive for the Indonesian investors with its promised access to new trade routes including Central Asia. We expect more trade and investment in Pakistan after completion of CPEC, particularly from Indonesia and ASEAN. In this connection, Gwadar port is an entry point, which can also be used by Indonesia for exports to the Central Asia region via Pakistan. With such connectivity, increased trade cooperation is something that is certain. Currently, with the existence of CPEC, there are two Join Venture of Indonesian companies investing in the Special Economic Zone in Pakistan, namely APICAL Group for downstream business of palm oil and its derivatives and PT. Indofood In Faisalabad for food products.
- How do Indonesian tourists feel in Pakistan? What more needs to be done to promote tourism exchange between Muslim countries?
The visit to Pakistan is usually an enjoyable experience for the Indonesians since there are plenty of tourist attractions, historical and religious monuments, Buddhist monasteries and natural beauty. The friendship and warm hospitality of Pakistani friends for the Indonesian visitors and shared cultural similarities are the main source of their pleasant experiences. The availability of halal food, similar religious practices and diversity of landscape catches the attention of our travelers. In the last few years, some Indonesian traveled to Pakistan in the winter to witness the snowfall in Northern areas. Aside from that, Pakistan’s tourism industry has enormous potential for increasing revenue and job opportunities in the country.To promote tourism exchange, it is critical to ensure security, infrastructure, and improving amenities and accommodations for both domestic and international tourists. I also wish for a direct flight from Indonesia to Pakistan and hopefully, we will hear some good news soon.
- Are there any statistics indicating how many citizens of your country are visiting Pakistan annually and vice versa?
Every year, between 1,500 and 5,000 individuals travelled to Indonesia in the period 2016 to 2019. The proportion of persons travelling from both nations has reduced dramatically as a result of the present pandemic. Beginning in February, we introduce a travel bubble arrangement to welcome foreign travelers, including those from Pakistan, and we urge you to visit Indonesia through Bali and to explore its rich and distinctive natural beauties.
- In your opinion, what role does media needs to play in promoting the positive image of Muslim countries, and how media can play an effective role in enhancing the relationship of the people of Pakistan and Indonesia?
The ability of the media to affect the attitudes and opinions of a wide variety of individuals is enormous. Through informative travel documentaries, movies, drama, coverage of cultural events and festivals, and promotion of art and food by highlighting commonalities, the media may play a significant role in bringing people closer together. Social media, in particular, can play effective role in bridging the religious and cultural divide by projecting a favorable picture of Islam and Muslim community. The media may minimize the intensity of various challenges that Muslims living abroad confront, such as Islamophobia, discrimination, and racial profiling, by promoting the essential principles of and the true face of Islam as rachmatanlilalamin, a blessing for entire universe, such as peaceful,loving, tolerance, and respect for the rights of women and minorities.
- How can both the countries further promote their cooperation in the defense sector?
Since the signing of the Defense Cooperation Agreement (DCA) in 2010, defence cooperation between Indonesia and Pakistan has grown significantly. Both countries today have substantial collaboration including all three services (Army, Navy, and Air Force), with the goal of strengthening the professionalism and competence of their respective militaries. Joint training exercises, information and experience sharing, and hosting mutual high-level visits are all done in light of this. These partnerships have been established by reciprocal activities, which will continue to increase the scope of the connection.