BCIS takes initiative to promote SL-Indonesia and ASEAN relations

By Frances Bulathsinghala

49 years after the establishment of the Association of Southeast Asian Nations (ASEAN), the question that is still being asked is whether Sri Lanka is doing enough to rectify what is largely seen as a missed opportunity in not joining ASEAN in the late 1960s, when the regional intergovernmental organisation requested it to. In the current context, maximising the vast potential for bilateral relations especially in trade and commerce with ASEAN countries in general and Indonesia, the biggest economy in ASEAN in particular, is seen as an existing potential, as was pointed out at a recent discussion on Sri Lanka-Indonesia Relations and the ASEAN Community. 

The seminar organised by the Embassy of the Republic of Indonesia in Colombo and the Bandaranaike Centre for International Studies (BCIS) looked at the current context of the ASEAN community and the diverse opportunities that exist for Sri Lanka to expand its relations with Indonesia as well as within the wider realms of ASEAN. As pointed out by BCIS Director Dr. Harinda Vidanage, the main objective of the seminar was to create a forum to discuss, debate and disseminate knowledge and lay the foundation for future research on the potential of Sri Lanka-ASEAN relations with a special focus on Sri Lanka-Indonesia relations. 

He noted that ASEAN has been transformed as a well regulated and creative platform for trade and commerce, from its original parameters of being a political organisation, and thereby offering at present numerous prospects to the business community and general public at South Asian as well as global level. 

As highlighted by Indonesian Ambassador to Sri Lanka Ambassador Harimawan Suyitno in his opening remarks, there is much relevance for ASEAN, for countries outside it, especially for those such as Sri Lanka which enjoy good relations with ASEAN countries, especially Indonesia which is now offering free visa entry for Sri Lankans for 30 days aimed at forging stronger business and bilateral relations. 

Ambassador Suyitno pointing out that the ASEAN economy is the 7th largest in the world and 3rd largest in Asia, stated that there is a need to engage in more discussions as well as research on trade potential ASEAN countries hold at a global dimension. 

Keynote speaker, Ambassador Djauhari Oratmangun, Senior Advisor on Strategic Issues to the Ministry of Foreign Affairs, Indonesia, specifically noting the short distance between Indonesia and Sri Lanka which is just over three hours, wondered why the relations between ASEAN and Sri Lanka is not as close as its flight route. Ambassador Djauhari Oratmangun noted that trade as well as cultural relations and tourism were among the areas Sri Lanka could promote in pursuing its connection with Indonesia. Speaking of one of the main original purposes of ASEAN he noted that it was for the core aim of solving regional conflicts in the South Eastern region.

As ASEAN is made up today, encompassing Indonesia, Laos, Malaysia, Brunei, Cambodia, Myanmar, the Philippines, Singapore, Thailand and Vietnam and representing economies at vastly different stages of development as highlighted in the seminar, the South East Asian region is seeking to deepen its ties and capture an even greater share of global trade and raise its economic profile, making it crucial for those outside the region to understand its potential. With total GDP growth approaching 2.3 trillion, he said the objective was to shift from its current 7th position to become the 4th largest economy in the world by 2030. 

Specifically in relation to Indonesia, it was pointed out at the ensuing discussions of the seminar, that as the largest economy in the ASEAN region, with significant increasing foreign direct investment (FDI), that Indonesia’s strong points linked to its overall macroeconomic growth is connected to the strategic use of its diverse natural resources, its dynamic large youth based workforce, its prudent fiscal management and its relatively successful attempts towards maintaining political stability. 

It was pointed out by Ambassador Oratmangun that during the time of the financial crisis of 2008 only Indonesia maintained a positive growth within ASEAN, thereby learning the need to work towards maintaining the stability of the ASEAN currency and ushering in the Chiang Mai Initiative where a total $ 12.3 trillion were maintained to be used by any of the ASEAN countries if needed, to strengthen their currency as a pre emption of facing any international financial market crisis.

The discussion ‘Influential Role of ASEAN as a regional Intergovernmental Organisation’, was led by panel members Ambassador Danesh Casie Chetty who had served as Ambassador in Indonesia from 1992 to 1994, Ambassador Gamini Munasinghe who had served as Additional Secretary Administration, Protocol and Consular Affairs, Ministry of Foreign Affairs 2002-2003 and Rizki Ramadhan, Executive Secretary at the ASEAN Studies Centre, Universitas Padjadjaran in Indonesia. 

The discussions led by the panel traced the evolution of regional loyalties in the aftermath of colonialism and the Cold War and how ASEAN was routed slowly but surely through the embryonic organisation, the Association of Southeast Asia (ASA) in 1961 which initially brought together Malaysia, Philippines and Thailand. 

Sri Lanka’s refusal of the invitation to join ASEAN when it was established was looked at in retrospect, tracing also the belated request by the Sri Lankan Government under Ranasinghe Premadasa to join ASEAN, when it was obviously too late, and therefore refused. Scholar on ASEAN affairs, Rizki Ananda Ramadhan pointed out some of ASEAN’s key achievements to be the free flow of goods through the ASEAN Trade in Goods Agreement (ATIGA), the free flow of services through the ASEAN Framework Agreement on Services (AFAS) and the Mutual Recognition Arrangements, the free flow of investment: The ASEAN Comprehensive Investment Agreement (ACIA) and the Protocol to Amend the ACIA as well as the Free flow of capital: Implementation of measures to further spur financial services liberalisation, capital market development, and capital account liberalisation. He further stated that the functions of the ASEAN Secretariat premises in Jakarta officiated in 1981 were with the vision to be the nerve centre of a strong and confident ASEAN community.

In the session ‘Relations between Indonesia and Sri Lanka within the context of ASEAN’, chaired by Dileep Mudadeniya, founder of the Centre for Research and Sustainability Studies, 

the historical ties with Indonesia was traced, dating back to times when there was goodwill between the monarchies of the two countries, to when Sri Lanka denied landing rights to the Dutch in 1959 to support Indonesia’s sovereignty as an independent country and focusing on the current context of the Sri Lankan Government re-exploring potential cultural, trade and economic based relations with Indonesia as well as other ASEAN countries. 

One of the key emphases throughout the seminar was the importance of promoting people to people interaction on aspects of trade and culture and making practical use of the agreements signed with ASEAN nations by both the Sri Lankan government and the private sector. 

Pertaining to Indonesia in particular, Omar Lebbe Ameer Ajwad, Acting Executive Director, East Asia Division, Ministry of Foreign Affairs, Sri Lanka, pointed out that Indonesia sends senior level representatives in the defence sector for defence related interactions with Sri Lanka and also noted that Indonesia has overriding maritime interests as well as interest in climate change and environment concerns. 

He explained that the common experience in 2004 due to the tsunami empowered the two countries to collaborate on disaster management and mitigation and that Sri Lanka takes active part in the disaster mitigation meetings and security forums by sending delegations to take part in regular discussions. 

Highlighted in the discussions was focus of the ASEAN Regional Forum which engages in multilateral dialogue with 27 states, including Sri Lanka, in seeking to address security issues in the Asia Pacific region such as irregular migration and transnational crimes. 

It was cited that Sri Lanka’s current plans of engaging with ASEAN was expected to progress rapidly with the nomination of a representative to the ASEAN Regional Forum Expert Group, the think tank created by the ASEAN regional forum representatives.

Dr. Rohantha Athukorala who had served as Chairman of Sri Lanka Export Development Board (EDB) and Sri Lanka Tourism and is currently the Chairman of Lanka Sathosa emphasised on building up sectoral dialogue partnerships in areas of trade, especially in areas pertaining to tourism, the tea industry and textile components, thereby enhancing economic diplomacy between Sri Lanka and Indonesia as well as ASEAN.