Mr Rusdi Kirana

ASEAN Business Leaders: How would you describe the bilateral relations between Malaysia and Indonesia?

Ambassador Rusdi: Indonesia–Malaysia bilateral relations, is one of the most important relationships in Southeast Asia. Thus, I feel like at home while being in Malaysia, as I consider Indonesia and Malaysia two neighbouring nations that share similarities in many aspects. Of course we have to discuss on important and sensitive issues such as maritime borders and the treatment of Indonesian migrant workers in Malaysia. But I am always cofident that both leaders are making some progress in bilateral relations. Furthermore, I have an important role to play with Indonesian migrant workers here in Malaysia. Moreover, I was part of the Indonesia Migrants Workers award (IMWA) initiative hosted in Sarawak last year.

ASEAN Business Leaders: Could you please comment on the Indonesia Migrants workers award (IMWA) hosted in Kuching last year and your role to play in this program?

Ambassador Rusdi: The decisions of the Indonesian workers to migrate and work in other countries has never been easy. They need to work hard to provide for the livelihood of their families. In such circumstances, most of them are successful, but some of them are not so fortunate. Hence, It was an honour for me to convey my message out there and to acknowledge the hard work of our Indonesian workers. The contribution of the Consulate General of the Republic of Indonesia, and the IMWA Committee for this initiative to promote the status of Indonesian workers overseas was a sucessful one indeed. It is also my fervent hope to see IMWA programme to be replicated and developed in other parts of Malaysia, through cementing collaborations with the Consulate General of the Republic of Indonesia in Penang, Johor, Kota Kinabalu and Tawau. So basically, my role is to support any intiative taken towards provide a better livelihood and brighter future to Indonesia’s workers in Malaysia and to to work together with the civil society to take on innovative measures in promoting the Indonesian migrants welfare.

ASEAN Business Leaders: Foreign Direct Investment is very important for Indonesia, do you consider that the country is doing enough to attract more foreign investors?

Ambassador Rusdi: Indonesia remains attractive for foreign investors and is maintaining an optimistic investment outlook this year, eyeing tourism as the key contributor to investment growth. Moreover, Indonesia will allow foreign investors to own a bigger proportion of shares and today they just need to visit one agency to deal with all the requirements, which I consider a bold step to facilitate this purpose. Indonesia is the world’s biggest archipelago with more than 17,000 islands. We are seeking to spur significant growth in the tourism sector in a bid to lure 20 million tourists a year by 2019, nearly double the current figure of around 12 million per year. And of course Malasyia’s tourists are fundamental to achieve this goal. The World Bank’s latest Indonesia Economic Quarterly Report declared that tourism was a promising field that could generate significant private investment for the nation which is good news for the country. Thus, our Indonesia Investment Coordinating Board “ BKPM” is playing a vital role here.

ASEAN Business Leaders: What’s the role that the Indonesia Investment Coordinating Board “ BKPM” is playing towards attract more FDI into Indonesia?

Ambassador Rusdi: Indonesia’s Investment Coordinating Board (BKPM) announced that total direct investment in Indonesia (foreign + domestic investment) reached IDR 176.6 trillion (approx. USD $13.2 billion using the IDR 13,400 per US dollar exchange rate as set in the revised 2017 state budget) in the third quarter of 2017, up 13.7 percent year-on-year (y/y) from the same quarter one year earlier.

ASEAN Business Leaders: Which are the main sectors that would you say have much potential for growth in Indonesia?

Ambassador Rusdi: The World Bank’s latest Indonesia Economic Quarterly Report declared that tourism was a promising field that could generate significant private investment for the nation. One particular subject of the Indonesian economy that has been hampering Indonesia’s economic and social development is the lack of quality and quantity of infrastructure. Here, there is a wide range of opportunities for foreign investment to come in. With respect to opportunities in infrastructure for foreign investment, the international business communty must be well informed about the advantages that we offer. Besides Tourism and Infrastructure, other sectors that are well placed for investment would be Health, Logistics and ICT.

ASEAN Business Leaders: China’s one belt, one road : Will it reshape global trade in your opinion. What’s the impact that this initiative will have on Indonesia?

Ambassador Rusdi: Since 2015 China has emerged as the third largest bilateral creditor for Indonesia, after Singapore and Japan. The future of trade in Asia could depend heavily on what becomes of China’s expansive One Belt, One Road initiative (OBOR), which calls for massive investment in and development of trade routes in the region. Thus, the OBOR is widely seen as China’s strategy to boost its global leadership in promoting an open world economy through enhancing connectivity. Our President Joko “Jokowi” Widodo was among 29 heads of state and government attending the Belt and Road Forum in Beijing, China, which was held on May 14 and 15 last year. During the forum, Jokowi and Chinese President Xi Jinping had a bilateral meeting and signed an action plan for the implementation of a comprehensive strategic partnership for 2017 to 2022. So my opinion is that, OBOR is an economic opportunity to seek the needed investment for infrastructure development in the country.

ASEAN Business Leaders: You are a successful business man in Indonesia, which has introduced the low cost traveling in and around Indonesia, as well as a member of presidential advisory council. What is your first strategy to lure Malaysian tourist to Indonesia?

Ambassador Rusdi: We are going to partner with the Embassy of Malaysia for a joint promotion. Visitors from Malaysia usually travel to Bandung, Jakarta, Joglosemar (Yogyakarta, Surakarta and Semarang in Central Java), Riau Islands and Bali. We have the “twin city concept” in the pipeline, such as Kuala Lumpur and Jakarta, Kota Kinabalu and Bali.

ASEAN Business Leaders: As a last question, what would you say is the value that Indonesia can provide to the ASEAN Community?

Ambassador Rusdi: The World Bank describes Indonesia as the largest economy in Southeast Asia and 16th largest in the world, having become the region’s only G-20 member in 2008. Beyond these facts and figures lies an incredibly unique country and culture — one with a distinctive position in the region. Its 17,000 islands contain more than 300 ethnic groups speaking in excess of 700 languages. Indonesia is highly regarded for its efforts in regional peace building, economic growth and diplomatic engagement. Hence, I consider deeper ASEAN integration a positive move for Indonesia and for the region as a whole.