Australian Commonwealth Coat of Arms

E&OE

19 February 2009, Sydney

Joint media conference with Hassan Wirajuda, Foreign Minister of Indonesia

Subjects: Australia-Indonesia Conference, bilateral relations, bushfire assistance, The Bali Process, travel advisories, US Sectretary of State Clinton's visit to Indonesia, importance of education, the Global Financial Crisis and financial support for Indonesia

STEPHEN SMITH: Can I officially welcome Hassan Wirajuda, Foreign Minister of Indonesia, to Australia. Hassan is here for the Australia-Indonesia Conference which commences tonight.

But in the meantime he and I have just had a formal bilateral meeting. And we jogged our memories and reminded ourselves that we've now had formal bilateral meetings in Bali, in Perth, in Singapore, in Canberra, in New York, in Lima, in South Sulawesi and now Sydney. And that reflects, I think, the high degree and high level of ministerial contact between our two governments.

Indeed, since the current Australian Government came to office I think we've now had some 34 two-way ministerial bilateral meetings over the last 13 or 14 month period.

Can I start, Hassan, by warmly welcoming and thanking you, for the condolences that you expressed personally to the Government and the people of Australia, to the victims of the bushfires and their families, which you and the President have done privately.

Can I publicly thank you for the assistance which Indonesia has rendered, both assistance on victim identification, but also the generous donation of US$1 million to help in the rebuilding, or reconstruction, of any schools adversely affected by the bushfires.

The contribution, so far as the schools were concerned, is of course particularly meaningful to us, given one of the great things we do by way of partnership is the school building program that we do together in Indonesia.

The bilateral relationship between Australian and Indonesia, we believe is at an all-time high. This has not always been the case, but we believe many years of effort, the signing in Perth of the Lombok Treaty; and the capacity for both governments and nations to understand that there can be issues about which we might have different views, but which don't shake the fundamentals of the relationship.

So, we very strongly believe that the government to government relationship, the nation-state to nation-state relationship, is at an all-time high. The only danger in our view is complacency or surprise; and we certainly don't want to be complacent.

And that's one of the reasons that we're holding the Australia-Indonesia Conference where we draw together very many senior people from academia, from business, from civil society to discuss the people to people exchanges and to enhance the people to people contact so far as the relationship is concerned.

In many relationships between nation-states you find that the people to people contact gets ahead of the government to government contact. It's not the case in this relationship. We think that there's a lot more that we can do in the people to people contact to enhance our relationship and that's the importance of the conference.

In terms of the bilateral meeting, we've discussed a range of issues.

Foreign Minister Wirajuda briefed me on the recent visit to Indonesia by Secretary of State Clinton. We spoke about the forthcoming G20 meeting in London and the global financial crisis.

We also spoke about the Bali Process, which is of course the process that we have in place in our region to discuss, regionally, people smuggling and people trafficking. And we discussed and welcomed the fact that the question of the Rohingyas will form part of the discussion at the forthcoming Ministerial meeting of the Bali Process.

There is a senior officials meeting of the Bali process to be conducted in Brisbane later this month and we're expecting that the Ministerial meeting will be held in Bali itself in the course of March, or in the course of April.

And we welcome very much that the Bali Process will deal with the Rohingyas issue.

Other issues we touched upon included Myanmar, and that was also the subject of conversations between Foreign Minister Wirajuda and Secretary of State Clinton.

I'll invite Hassan to make some opening remarks and we'll then take questions. We have both Australian media and Indonesian media present, so we'll go by way of alternative questions. So, when Foreign Minister Wirajuda has completed his remarks I'll invite a question from the Indonesian side, and then from the Australian side.

We have slight time constraints, we have to go to lunch, but we'll do our best to answer your questions. If any of the Australian media want to raise issues that don't relate to the bilateral relationship, if you could leave those to the end.

So Hassan, again, welcome very much. Always a pleasure to see you here and to work closely with you, and I invite you to make some opening remarks.

HASSAN WIRAJUDA: Thank you very much, Stephen.

So, also I like to thank you for the generous welcome that you have extended to me and my delegations.

We have met five times in the past one year, but I assure you, Stephen, that looking forward to meeting more often. I always enjoy my meeting with you, which I found always very productive.

I should like to reiterate our sympathy and condolence to the families and friends of the victim of the wildfires in south-western Victorian state. As friends and neighbours, we try to contribute by sending a team of the disaster victim identifications. They have been in Australia since last Saturday.

We try to contribute by providing assistance of US$1 million, a small amount, but this is truly reflect our sense of friendships because we the Indonesian people remember very well that Australia help us in times of difficulties such as the - on the aftermath of the earthquake and tsunami occurred in Aceh and off Sumatra, likewise, when the disaster, earthquake disaster that struck central Java and Jokjokarta in 2006.

We appreciate greatly the Australian initiative to call the conference, namely Australia-Indonesia Bilateral Conference, which will be held tomorrow.

I think the conference is timely, as the conference would not only be attended by around 100 leaders of civil society from both Australia and Indonesia, from Indonesia alone 70 leaders of civil society, or various backgrounds, including business, media, universities, think tanks and community organisations.

We have enjoyed the excellent relations bilaterally and I share your view, Stephen, that Indonesia-Australia's relations have never been as excellent as they are now. This is a result of the hard work of our two governments.

But the effort to enhance the bilateral relations between our two countries and peoples are not the business of the two governments alone, and it's too big to deal with this, manage and handle by our two governments. We need the involvement of our people.

I'm pleased with the greater people to people contacts, and the contributions of people of Australia and Indonesia. Our dream is to make Indonesia and Australia not just in terms of geography, we are as neighbour, but also we are as friends and partners.

I look forward, Stephen, to join you tomorrow participating at the Australia-Indonesia bilateral Conference.

You have mentioned about our discussions on the Bali Process, the initiative that we jointly undertook in 2002, in dealing with then the flow of illegal migrants from Iraq, Iran and Afghanistan heading for Australia. Indonesia feel the problems as not the problem - bilateral problem between Australia and Indonesia but rather is a problem - as an international problem; the fact that solutions of this problem must involve countries of origin, countries of transit and countries of destinations. That's why the Bali Process in 2002 and in 2003.

I think the Bali Process had effectively stopped the flow of illegal migrants coming to our regions, but also helped to settle the illegal migrants mainly - primarily by sending them back to the countries of origin.

Indonesia early this month experienced another new problem of flows of illegal migrants, mostly economic migrants from - I mean, of Rohingyas people. They landed in - first in Thailand, coastal areas of Thailand and they were pushed back to the sea by the Thai authorities, and they landed in the coastal areas of Aceh, both in the northern part and eastern part of the province of Aceh.

The number is around 400. We gave them humanitarian assistance by providing shelter, food and medical treatment. Fifty-one of them had to be hospitalised because of their bad conditions. Thailand has proposed to organise a meeting of neighbouring countries; Thailand, Myanmar, Bangladesh and Indonesia.

But to us, as we had the existing mechanism, the Bali Process, in which Thailand is - I mean, Thailand chairs one of the two working groups, we were able to convince Thailand that we're better to reconvene the Bali Process at the minister level; something that we have discussed, Stephen and I have discussed last year, on the need to revive - I mean, or convene the Bali Process at the minister level early this year in view of the growth of illegal migrants passing in Indonesia water heading for Australia.

I should have mentioned that at the same time of the arrival of these boat people from Rohingyas, our police arrested some 40 illegal migrants, Afghan illegal migrants in the province of south-eastern Sulawesi. Four Indonesians were also arrested in these smuggling people.

So, we see the urgency of convening the Bali ministerial meeting. We are trying to explore - we are now exploring the agreeable date for that meeting, most probably the meeting would be in April this year.

In our bilateral meeting just completed, we discussed regional and global issues of concern to Australia and Indonesia: ASEAN, including Myanmar, but also the global financial crisis, in particular our preparations for the second G20 Summit to be held in London in early April.

So, once again, Stephen, I thank very much for your warm welcome and I'm looking forward to a productive conference tomorrow.

STEPHEN SMITH: Well, thanks very much Hassan. Now, I'll go to the Indonesian side first. This one here.

QUESTION: Thank you Minister. I'm [indistinct]. Minister, one of the aims of the conference, that is to promote - that is to make the people and public perception in both countries better, does Australian Government plan to follow the steps of Canadian and American governments that has already lifted the travel advisory to Indonesia, so that Indonesia will look as a normal country in Australia?

STEPHEN SMITH: Thank you. The travel advisory that we have for Indonesia and we have for other countries, we regularly review, and we do that on the basis of up-to-date expert advice so far as threatened security assessments are concerned. And that review, as I say, occurs regularly.

But the purpose of Australian Government travel advisory is to draw to the attention of Australian citizens matters which they take into account in determining whether or not they travel. And so it's there for Australians to bear in mind.

I'm happy to stand corrected on the record but I think that, I’m happy to stand corrected on the statistics, but I think that in the year just gone, 2008, we saw a record number of Australians visit Indonesia.

So the travel advisory is there. We assess it regularly on the basis of expert advice. And Australians bear it in mind when they determine their travel.

One of the things we'd like to see coming out of our conference, are suggestions as to the way in which both the Australian public and the Indonesian public can appreciate much more both Australian characteristics, values and virtues, and Indonesian characteristics, values and virtues. And that obviously entails travelling between the two countries.

And, as I say, I think you'll find that 2008 saw a record number of Australians travel to Indonesia.

One from the Australian side?

QUESTION: This is a question from - for Minister Wirajuda. You just met Secretary of State Hillary Clinton in Indonesia, and she remarked that she saw your country - she saw Indonesia as an example of how Islam and democracy can be side by side.

Are you happy with those comments and what do you think about what she said?

HASSAN WIRAJUDA: Of course we're happy with that comment which actually reflects on the real situation in Indonesia. In the past 10 years we have proven that Islam, democracy and modernity can go hand in hand.

And the challenge for us is how to consolidate that the achievement. And it is in this context that during our discussions yesterday, the US see the importance of developing stronger cooperation between the United States and Indonesia.

We agreed on promoting a comprehensive partnerships[sic] meaning an agreement to expand and deepens all aspects of our bilateral relations. But please keep in mind that Indonesia and Australia have developed the bilateral - comprehensive partnerships since April 2005.

STEPHEN SMITH: Can I say how much we welcome the fact that the Secretary of State's visit is to Asia, to North Asia, Japan, South Korea, and China. But also we welcome, very much, her visit to Indonesia. Australia's view is that the active and ongoing involvement of the United States in the Asia-Pacific region is very important and we think that the visit, particularly the visit to Indonesia, sends a very important and welcome signal and we welcome that very much.

Foreign Minister Wirajuda referred to Indonesia as a democracy, and I think that's one of the things which is under appreciated; that in the last 10 years or so, we've seen Indonesia turn itself into a robust and thriving democracy, the largest Muslim populated democracy in the world.

I've just come from the second largest, Pakistan, which as we know is currently having its difficulties. But the importance of Indonesia as a robust, thriving democracy in our region and in the world can not, in my view, be underestimated. And Australia welcomes, very much, the Secretary of State's visit to Indonesia.

Now, one on the Indonesian side?

QUESTION: [Inaudible question]

STEPHEN SMITH: Well, you're quite right. We believe that people to people relations is very important and that's one of the reasons we've decided to have such a high profile conference which focuses on the bilateral relationship, but more in the non-government context, than in the government context.

One of the areas where I think it's true to say Hassan and I both believe very strongly we can enhance the relationship, is through education. And Australia sponsors a program where we are currently building or repairing 2000 high schools in Indonesia. And that's a very important program because that means many young Indonesians grow up understanding that Australia has played some role in their education.

At the same time we'd like to see more Australians taking part in educational activities in Indonesia itself and also studying Indonesia, not just Bahasa Indonesia as a language, but studying Indonesia; its culture, its history, its relationship. One of the programs the Australian Government has is a $60 million to encourage the studying in our schools and universities of languages from our region, including Indonesian.

So I think education, further enhancing our education exchanges, making sure that in Australia we have students who are studying Indonesia as a language, but also studying Indonesia as a nation; a country, its culture and its people. And so we, in particular, encourage those educational academic exchanges.

This one over here.

QUESTION: Karen Snowden from Radio Australia. Welcome Mr Wirajuda.

HASSAN WIRAJUDA: Thank you.

QUESTION: It's good to see you here. A question for you and a question for Mr Smith, if I may?

One question is about the travel advisories, to Mr Wirajuda. Are you asking that Australia remove the travel advisories during this visit [indistinct] directly. And are you unhappy with Mr Smith's response that they're not going to do so?

And Mr Smith. The language here is very encouraging. You talk about democracy and openness and enhancing people links between the two countries, which has been a bit of a mantra between the two governments for some time, over several years now. But at the same time, this conference, it seems to me is not open to the public, the general public. Some of it isn't open to the media. And so I just wonder about enhancing those people to people links and whether this is the way to do it effectively.

And why - there seems to be a certain sense of timidity about having an open conference. If you could comment on that?

STEPHEN SMITH: Hassan.

HASSAN WIRAJUDA: We, at the Government level, discussed the issue of travel advisory from time-to-time. Of course, on our side we expect that Australia should leave the travel advice, because that - not only on the grounds in the past three years we did not experience any terrorist bombing in Indonesia, but also in our collective efforts to combat terrorisms in Indonesia. We do it successfully - including with the support of Australia.

Of course, it is a matter of the Australian Government, but I believe this is an issue that has been - that has been of concern to certain quarters in Australia. It is true that as Stephen as mentioned, that in terms of the flow of tourists to Indonesia, last year we enjoy having more tourists from Australia than many years before. Meaning that the Australian people, in the end, have their own judgement whether to fully observe the travel advice that the Government of Australia issued from time-to-time.

But perhaps the exchange of a - in the field of educations that - has been much affected by the travel advice. I was with Minister Stephen Smith in Perth last February, and met with a number of Australians scholars, teachers who expressed their wish to visit Indonesia as part of the educational exchange, but have experienced difficulties because of the travel advice.

So I wish to see that the Australian Government, in line with the - our determination to promote people to people contact, to review the policy of issuing travel advice to Indonesia.

This is something that also in line with the - not only on the progress that we have made in Indonesia, but of the recognitions that some countries like the United States and Canada have done by lifting their travel warning or advice last year.

STEPHEN SMITH: Thanks, Hassan. The conference I think has 140, 150 delegates to it. They are a mix of academics, people from civil society, people from industry and commerce from both countries, also young people who may well aspire to being leaders of their countries in particular fields. Some sessions are open to the media; I think the session that Hassan and I chair tomorrow morning is open to the media. Some sessions are not on the basis of people wanting to have effectively Chatham House discussions.

There are some sessions where journalists have access to and there are some sessions where members of Parliament have access to. I don't regard it being an essential pre-requirement to have a good discussion about relations between two countries, that either members of parliament or journalists are necessarily present all time.

Indonesian side. And I think we'll probably have to make this, sort of, the last one on either side.

QUESTION: Michael Perry from Reuters. Can you just clarify, resuming the Bali Process, has Thailand agreed to attend this ministerial meeting? And I assume it will be Prime Ministerial will.

STEPHEN SMITH: Yep, well…

QUESTION: Thailand has agreed?

HASSAN WIRAJUDA: Thailand has agreed.

STEPHEN SMITH: And it's a Ministerial and there are two things. There's a senior officials meeting which prepares for the Ministerial meeting. That takes place in Brisbane, from memory, 23-24 of this month, in the course of this month. We'll then have a Ministerial meeting from Ministers around the region who've been involved in the Bali process. And as Hassan has said, we're trying to find the dates to everyone's convenience. It might be the end of March, probably more likely some time in early April.

QUESTION: Dana Robertson from the ABC's Australia Network. I understand there was a request several months ago for a loan from Australia to Indonesia to cope with the fall-out from the global financial crisis. Has there been any progress on whether that loan will or won't be made? And has there been any other discussion of how the two countries could work together to tackle some of the problems that have been raised financially?

HASSAN WIRAJUDA: That's was agreement in principle. I recall that during that the meeting between President Yudhoyono and Prime Minister Kevin Rudd in Washington on the margins of the G20 Summit. In response to our request, Indonesia's request, Prime Minister Kevin Rudd in principle agreed to provide AU$1 billion to - for the budgetary support to Indonesia.

This is meant as a contingency fund to - for the economic package, stimulus - economic stimulus package. And those are primarily for infrastructure developments, because in the midst of the crisis we need to make our real economic sector works and by promoting infrastructure building, this would absorb more job - this is job creation basically.

At the same time it would help create market confidence in our economy. In addition to an arrangement that we have with Australia, Indonesia is also making similar arrangement with Japan, the Asian Development Bank and the World Bank. So in total the amount of US$5 billion is pledged to - as the budgetary support for Indonesia.

Indonesian Government has increased its Budget deficit from initial amount of 1.1 per cent this Budget year to around 2.5 per cent to allow us to have space for infrastructure projects. Our economy is expected to grow around 4.5 per cent, so actually as this year, at least the first half of this year, we expect that the impact of the global financial crisis would not been too severe for us.

But anyway we need a contingency fund to help boost the market, confidence of the market, at the same time we may be [indistinct], we may use this money in the future in case we need it.

STEPHEN SMITH: I'll have to make this the last answer, I'm sorry. Hassan has accurately reflected that arrangement. We, as a good friend and a good neighbour and a good partner, wanted to help. It's in the nature of a contingency arrangement and it may or not be called upon, depending upon the adverse consequences of the global financial, now global economic crisis. And as Hassan has indicated, it's an arrangement that Indonesia have entered into with other nations as well.

It's something is obviously within our resources to meet in the nature of a contingency. And Hassan has said, time will tell whether there's a need for it to be called upon.

Well ladies and gentlemen, thank you ve…

QUESTION: When was that?

STEPHEN SMITH: The Treasurer announced it, I think from memory, the last quarter of last year. Three or four months ago.

So thanks very much ladies and gentlemen. I look forward to seeing some of you, if not all of you, at the conference in the next couple of days.

Thanks very much.

HASSAN WIRAJUDA: Thank you.

[Ends]

Media inquiries

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