Indonesia's Close Ties with the EU!

Today, an estimated 6,351 Europeans reside in Indonesia, with 13.8% settling in the country. This is according to the Ministry of Manpower and Transportation report on May 10^th. Indonesia’s economic boom and the advent of the European Union have led to increased cultural exchange and strengthened ties. According to the Indonesia Diaspora Network report December 2013, 185,512 Indonesians made the Old Continent their home; this is in addition to around 700,000 people of mixed or Indonesian descent within the Netherlands.

During the post-war era, Europeans arrived to work within Indonesia’s expanding industries, with many more traveled to witness cultural and natural wonders. Whereas, some Indonesians emigrated to Europe for a better livelihood as did Europeans to Indonesia for similar reasons. Currently, the numbers of individuals are rising, in migrating in the opposite direction for higher education. The European Union’s recent drive to receive more foreign students to study in its renowned universities by offering scholarships via its Erasmus Mundus education outreach program has also been successful. During 2013, approximately 7,000 Indonesians were educated in the EU, many of whom gain financial aid from the European Commission.

The Indonesian government and the EU have long worked together on a range of bilateral projects, aiding in resolving significant issues. The Blue Book on EU-Indonesian Development Cooperation (2013) outlined six partnership areas – economic cooperation, education, climate change and the environment, human rights and good governance, preparations for disaster and conflict prevention and health, sanitation and water. A number of these areas target specific regions of the island nation requiring more help in particular areas and less in others, maximising efficiency.

Alongside the whole of the EU, Indonesia is amongst the G-20, an organisation representing the world’s 20 largest economies, with Indonesia being the tenth largest, according to the 2014 World Bank report. Subsequent of Indonesia’s growing economic clout, the EU is seeking a Comprehensive Economic Partnership Agreement (CEPA) - a deep free trade agreement. The EU was Indonesia’s second largest foreign direct investment (FDI) source, following Japan in statistics released by the 2012 Indonesia Investment Coordination Board, although it has dipped in the rankings since, due to slower yearly increases of investment compared to Singapore and South Korea.

As the second largest democracy and the second largest Muslim nation in the world, Indonesia has great geopolitical significance. This is likely to rise, owing to the archipelago’s strategic location within a region which views the rise of India and China. President Susilo Bambang Yudhoyono visited at least four European countries during his second term, as British Prime Minister David Cameron, German Chancellor Angela Merkel and Dutch Prime Minister Mark Rutte visited Indonesia during 2012 and 2013. These indicate Indonesia’s rise as an international influential role. In the future, a continent accelerating in economy, may gain from increased cooperation with a nation seeking a role match its economic stretch and large demographic.

However, the EU and Indonesia have much to benefit from each other, their culture and difference.