In 2009, Robert Kaplan, a renowned expert on international political science, wrote an article in the Foreign Affairs magazine, citing the Indian Ocean as the "the main stage in the 21st century".
The citation is in line with the facts that show that the Indian Ocean is a highly strategic region. The region is the world\'s major trade route through which half of the world container trade and two-thirds of the world\'s oil trade pass. The region is also growing by above the global average. In 2015, when the world economy grew by only 2.6 percent, the average growth of most members of the Indian Ocean Rim Association (IORA) reached 4.3 percent.
Amid the important role of the region, IORA stands ready to strengthen cooperation among its member countries, including in the economic field. In 2015, the baton of the association chairmanship was transferred from Australia to Indonesia. Indonesia is determined not only to be the chairman of IORA, but also a leader.
Indonesia\'s leadership in various organizations, both in regional and international forums, has thus far always been demonstrated through various new initiatives, which positively impact on change. Indonesia\'s leadership style is not something new. Previously, the role of Indonesia was seen through a number of international organizations. In ASEAN, through the Bali Concord III, Indonesia played an important role in the formation of the ASEAN Community. Meanwhile, in APEC, the role of Indonesia was seen in the Bogor Goals of 1994, which to date continue to be aspirations for APEC member countries.
The same thing also applies through IORA where Indonesia is encouraging a number of important breakthroughs to strengthen partnerships to maintain peace and stability in the region, as a key prerequisite for economic growth and prosperity in the Indian Ocean region as a new growth center.
The first breakthrough to be made is to initiate a discussion about the Jakarta Concord, a strategic and visionary document to enhance the IORA partnership and mapping the future direction of the organization. The Jakarta Concord strengthens cooperation in six IORA priorities and encourages cooperation in three new areas, namely the blue economy, empowerment of women and the promotion of democracy.
Indonesia has also encouraged concrete measures to implement the strategic vision of the Jakarta Concord. With regard to this, Indonesia\'s second initiative is to realize the discussion about an IORA Action Plan, which consists of measurable targets and concrete programs to increase cooperation among member countries. The action plan is translated into work programs in the short, medium and long terms, which can be assessed and measured in their implementation.
The third important document is the Declaration to Prevent and Combat Terrorism and Extremism with Violence. This declaration is the foundation of the mutual commitment of IORA members to voice moderation and tolerance, and promote cooperation through dialogue and the exchange of information.
Indonesia\'s chairmanship culminated in the organization of the IORA Summit on March 7, which coincided with the 20th anniversary of IORA. The IORA summit, which had the theme "Strengthening Maritime Cooperation for a Peaceful, Stable and Prosperous Indian Ocean" was attended by representatives from 21 member countries, seven dialogue partner countries and eight international organizations. The summit was also a place for the leaders of IORA member countries to approve the Jakarta Concord.
Some parties might assume that the summit was only a ceremonial performance without any real benefit. However, reality has shown otherwise. The Indian Ocean region not only plays an important role in the world economy, but also for the economy of Indonesia. In 2016, Indonesia\'s exports to IORA countries reached US$42 billion, accounting for a third of the total Indonesian exports. From this trade, Indonesia recorded a surplus of $1.5 billion last year.
Amid Indonesia\'s fall in exports as a result of the global economic slowdown, the exports to several IORA countries showed a rise, which reflects their potential as non-traditional markets. For example, Indonesia\'s exports to South Africa, Iran, and Oman rose 9 percent last year. Given that the Indonesia-IORA trade covers only 10 percent of the total IORA trade, there is great potential to continue increasing this.
The important meaning of the Indian Ocean region is also seen in the investment sector. Up to six of Indonesia\'s foreign investment source countries are IORA member countries. Their investments have also shown increases. Last year, investment from Singapore rose 50 percent, investment from Thailand doubled, and even investment from Mauritius also increased by more than 10 times.
IORA member countries also play an important role in the tourism sector. Three of the four largest countries of origin of foreign tourists to Indonesia are IORA member countries. The number of tourists from IORA countries is also increasing, as an example, tourists from Thailand to Indonesia increased by 6 percent, those from Australia by 14 percent and from India by 28 percent in 2016.
IORA member countries also offer great opportunities for the improvement of economic cooperation for Indonesia, especially from the western part of IORA, starting from South Asia, the Middle East up to Africa. Indonesia is determined to take advantage of these opportunities by emphasizing economic cooperation as one of the focuses of discussion during the summit. One of the major elements of the Jakarta Concord is the strengthening of economic cooperation, especially to increase trade and investment, to boost infrastructure development, to strengthen connectivity, and to involve the private sector, especially SMEs.
At the IORA Summit, increased economic cooperation was the major priority. For example, last year Indonesia exported 150 railway cars to Bangladesh, an IORA member country.
More economic cooperation opportunities are also offered by the fisheries sector.
One of Indonesia\'s other priorities is the realization of IORA cooperation by encouraging the involvement of business owners. This was realized with the implementation of the IORA Business Summit, the first ever held on the sidelines of the IORA Summit.
Through the IORA Summit, Indonesia has strived to improve cooperation in the region. Indonesia is also determined to make the summit a vehicle toward a more robust economic partnership between Indonesia and all other member countries in the region, which will ultimately bring us closer toward Indonesia as the world\'s maritime axis.
RETNO LP MARSUDI
Foreign Minister
