Glaxo Smith Kline Conference Center, Oslo - 30 August 2004

Your Excellencies, Ladies and Gentlemen.

It is a great pleasure for me to open this seminar addressing new potentials and prospects for the Indonesian Economy.

I would specifically welcome His Excellency Coordinating Minister of Economic Affairs, Professor Dorodjantlun Kutjoroojakti, my counterpart His Excellency Professor Rohmi Dahguri, Minister for Marine and Fishery and their accompanying delegation to Norway.

This event organized by theForum of Indonesia Seminar is intended to bridge and establish networks between our two countries business and industrialist communities. I trust this arrangement and the networking activities adjacent to it will support the facilitation of new avenues for cooperation, trade and investments directed at the exploitation of the generous opportunities of the marine sector in our two countries.

Indonesia and Norway are two countries bordering the sea. Differences are significant in terms of population, political and cultural traditions and geographical, demo-graphic, business, economic and welfare dimensions. We find however important parallels.

Although the coastal line of Indonesia is stretching more than 4 times the coastal line of Norway, the sea territory of Indonesia is roughly 5,8 million square kilometres compared to 2.2 million square kilometres. These relatively more balanced facts structures an agenda for a dialogue.

Marine life and vital coastal habitats are straining under the increasing pressure of demographic mobility, recreation, leisure needs and international tourism. We are challenging natural systems capacities once viewed as too vast and inexhaustible to be harmed by human activity.

The fishing industry is the backbone of coastal Norway. A defining characteristic of the industry is its international orientation. Norway is exporting fish and fish products at a value exceeding NOK 30 billion to more than 150 countries.

The fishing industry in Norway is divided into a marine and an aquaculture sector. More than half of the export value is based on capture fisheries of which the larger part is based on fish stocks shared with other countries.

A prerequisite for Norway’s ranging as one of the worlds larges exporters of fish is our confidence in international cooperation and agreements.

Norway has found it rational to adapt to the various UN instruments addressing the rights and the responsibilities of the coastal states.

The application of a precautionary principle directs at all decision-making processes at all governmental levels. Likewise the principle is mandatory for the management of the fish farming industry.

I daily receive reminders from an increasingly critical public opinion and informed consumers about the strength of the principle. The essence of these messages is that the Government and the fishing industry have to do more than just to pay lip service to environmental concerns.

Industries based on natural resources are vulnerable to different kinds of human actions and unpredictable natural conditions. Thousands of jobs and billions of Norwegian kroner of investment are constantly at stake.

The most economic interesting capture fish species in Norway (herring and cod) were a few years back severely depleted.

The Government implemented in the late 1960ties a ban on the herring fishery, which lasted for more than 20 years. In the late 1970ties regulations on the cod fishery were put into action. Measures were implemented directed at the ability of the stocks to replenish.

Thanks to long-term recovery programs both stocks are now in a healthy order supporting sustainable economic viable capture fisheries.

Fish diseases are a risk to the expansion of the fish farming industry. Results from heavy investments directed at intensive research efforts have over the years been integrated in comprehensive epidemic combat plans. Joint efforts from the industry, the scientific community and the public authorities have managed to fight these challenges.

The expansion of the fishing industry towards more value added products has however most effectively been hampered by international barriers to trade. The resent development in WTO is highly welcomed.

Although the ministerial meeting did not come to any decisions on industrial goods, amongst them fish, the breakthrough paves the ground for constructive further negotiations aiming at reducing the present barriers to trade in fish and fish products.

The governance of the territorial sea, the exclusive economic zone and continental shelf meet a great variety of challenges.

The exercise of control to prevent infringement of the fisheries, marine environment and sea traffic are to a larger or lesser extend successfully dealt with by international and national institutions.

New issues are now surfacing like the exploring of natural marine genetic resources. The production of energy from the water, currents, and winds and use of artificial islands are examples of new topics to be addressed by the law of the sea.

My portfolio embraced until last year the fishing and fish farming industry as well as ports and seaways.

As from the 1 ^st> of January 2003 operations to regulate pollution of the oceans caused by traffic at sea was added to my portfolio.

A new sea and fisheries act is now in the pipeline. These actions reflect the need for a holistic approach directed at a sustainable exploitation of all potential values to be derived from the ocean.

Norway has to a large extent managed to organize a relatively harmonious relationship between conflicting industrial goals and sensitive environmental concerns. Investments in new oil and gas technologies have contributed to lower the tension between the fishing industry, the environmentalists and the oil and gas industry.

I feel that there is a growing attentiveness nationally as well as internationally to invest in the knowledge base and holistic management approaches. The principles of ecosystem health and integrity, sustainability, and precaution call for astute national and international governance and leadership.

Wealth in the form of natural resources should be a blessing for countries endowed with it. All policies and efforts made by governments should benefit all citizens in order to ensure each and one of them well being and a decent life.

Norway has experience to offer in the management of natural resources, an experience we are sharing with partners in many parts of the world. Our sharing is however qualified.

The Extractive Industries Transparency Initiative meeting in London 17 June 2003 is strongly supported by Norway. The initiative aims to strengthen democracy, good governance, and rule of law. The Initiative reflects extradition of natural resources of oil and gas. However from my Government side its intention is to be con-sidered as a code of business practice for all Norwegian enterprises involving in foreign countries.

The EITI is not a cure for all ills, but there is strong evidence that transparency creates an environment conducive to sustainable economic growth, fair distribution and social development.

For countries the EITI initiative represents an opportunity to improve the effectiveness of resource management, promote sustainable growth and attract foreign investment.

For companies it represents an opportunity to put across a progressive and professional image of social responsibility and, more importantly, to promote a sound and predictable business environment.

The EITI is a guiding principle for all member companies of the Confederation of Norwegian Business and Industry. The Norwegian companies Hydro and Statoil are very active in pursuing this end.

I hope this seminar addressing Indonesian potentials in the marine sector and Indonesian trade and investment policy will succeed in bridging and linking the business communities in the Countries together.

I also again take the opportunity to wish my fellow ministers and their delegation a pleasant and successful visit in my country.

Mr. Ambassador: tank you very much for giving me this opportunity to give the introduction to this seminar and the audience for listening to me.