Australia has much to celebrate. As several leading economies buckled under the weight of the global credit crisis, the country grew due to its strong economic fundamentals and wise fi nancial policies.

From the 1980s until the 1990s, when growth was fastest in Asia, many experts referred to the "Asian Tiger" economies of Singapore, Taiwan, Hong Kong and South Korea as foreign capital flooded into those burgeoning markets.

At the turn of this century, economists identified the newest set of the world's fastest-growing countries and grouped them under the term BRIC – Brazil, Russia, China and India. Less than a decade later, the Organization for Economic Cooperation and Development (OECD) revised the term to BRIICS to accommodate two more countries, Indonesia and South Africa.

According to Douglas Lippoldt, acting head of the Development Division of the OECD’s Trade and Agricultural Directorate, Indonesia's inclusion in this new grouping of countries is "recognition of the importance and size of the country, (its) situation relative to OECD member countries and the desire of OECD countries to engage in it more closely."

As one of the world’s fastestgrowing economies, Indonesia is expected by 2011 to post GDP growth of 7 percent, higher than several G-8 countries.

Even amid the worst global crisis of this generation, the economy expanded by 4 percent year-onyear in the second quarter of 2009, giving Indonesia the fastest growth rate in Southeast Asia.

This growth and achievement is remarkable considering that only about a decade ago, the country was the epicenter of the 1997 currency crisis, and went through political turmoil, plummeting falling gas prices and its worst drought in 50 years.

Japanese Consul General in Sydney Nobuhito Hobo

Over the last 10 years, GDP growth steadily climbed to 6.1 percent last year.

The country has proven to be more resilient than its neighbors because of less dependence on exports and a huge domestic market made up of 230 million people.

The government was also quick to respond to the economic crisis late last year by protecting liquidity, providing alternative financing for an expansionary budget and implementing an economic stimulus package worth more than $6 billion.

President Susilo Bambang Yudhoyono, the first directly elected leader, won a second five-year term this year and is expected to continue with his "pro-growth, pro-poor, pro-employment" policies.

SBY, as the president is fondly called, has gained wide respect in the international community and was responsible to the free-trade agreement signed in 2007 with Japan, Indonesia’s largest trading partner and investor.

Golden anniversary

Last year, the two countries marked the 50th anniversary of diplomatic relations and ushered in a new era of cooperation through the Japan-Indonesia Economic Partnership Agreement, which came into force in July 2008 after three years of formal talks.

"This is the sixth EPA for us and we hope it will strengthen our relations not only in foreign direct investment but also culturally mutual benefits," says Japanese Ambassador to Indonesia Kojiro Shiojiri.

"Since it was put into effect last year, we have seen positive signs from its implementation," he adds.

Both countries also have an existing Strategic Action Plan composed of 118 measures to promote foreign investment in Indonesia in five areas: tax, customs, labor, infrastructure, and competitiveness of small and medium-size enterprises.

From 1967 to 2007, cumulative direct investment from Japan to Indonesia was over $40 billion, or 11.5 percent of total foreign direct investment in the country. Between 2007 and 2008, there were 243 Japanese-invested projects in the country.

Major Japanese manufacturing companies in the country such as NOK, Panasonic, Astra Honda Motor, Denso, Toray Industries, Ebara and Uni-Charm have announced plans to expand their production over the next few years.

"Historically, Japanese investment to Indonesia was largely directed to the manufacturing sector, which contributed significantly to employment and also helped in strengthening the specific industry through technology transfer," says Shiojiri.

According to the Indonesian Investment Coordinating Board, there are around 1,000 Japanese companies in the country that directly employ about 324,000 people.

While both countries have enjoyed half a century of diplomatic relations, there are more areas for further collaboration.

New investments in areas such as energy and mineral resources (Indonesia's main export commodities) by Japanese companies such as Mitsui are under way.