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Indo-Bali Bond

Indo-Bali Bond

Author: J Felix Raj
Publication: Indian Currents
Date: February 15, 2004

Introduction: The overwhelming majority of Balinese people (almost 95%) are Hindu in a predominantly Muslim Indonesia. But Balinese Hinduism is a world away from that of India.

[Note from Hindu Vivek Kendra: In an otherwise favourable article, the author cannot miss any opportunity to make snide remarks at the Hindus. First, he does not explain how the Balinese Hinduism is 'a world away from that of India'.  Second he says: "Yes, the October 12 blast was reportedly aimed at Westerners. But, why in a Hindu Island? Was there a message to the Hindu world? Was it a reaction to what was going on in India particularly in Gujarat?"  There seems to be an implied message that the Islamic terrorists have not indulged in the killings in places other than to want to send a message to the Hindu world.  Two, what about the acts of Islamic terrorism prior to the post-Godhra riots in Gujarat?  And three, the author is letting his 'fertile' mind wander.]

Bali is the most well known of Indonesia's 13,700 islands, and it remains the top tourist attraction in the archipelago. One of the biggest attractions of Bali is its culture, which despite the intrusion of the outside world has been preserved in its unique arts and ceremonies. Denpasar, the island's largest town and administrative center, with a population of over 370,000, is the Capital of the island.

The island of Bali, with a population of approximately 3 million people, constitutes a province of Indonesia and is administrated by a Governor. The population is almost all Indonesian, with the usual small Chinese contingent in the big towns, a sprinkling of Indian merchants, plus a number of more or less permanent visitors among the Westerners. The overwhelming majority of Balinese people (almost 95%) are Hindu in a predominantly Muslim Indonesia. But Balinese Hinduism is a world away from that of India.

At one time Hinduism was the predominant religion in Indonesia (witness the many great Hindu monuments in Java) but it died out with the spread of Islam through the archipelago. The last great Hindu Kingdom, that of the Majapahits, virtually evacuated to Bali, taking not only their religion and its rituals but also their art, literature, music and culture. They have retained their Hindu religion. Its teaching is to reach the attainment of peace and harmony in life. Hindu Dharma is a special blend of Hinduism, Buddhism and ancestral worship, which has flourished over the past centuries.

Religion is inseparable from everyday life in Bali, from the simple daily rituals to the lavishly semi-annual temple festivals. Religion in Bali has two overwhelming features: it is absolutely everywhere and it is good fun! You cannot get away from religion: there are temples in every village, shrines in every field, offerings being made at every corner. However, the number of Muslims is steadily increasing through immigration of people from Java, Lombok and other areas of Indonesia who seek work in Bali.

The nature of age-old economic relations between India and Bali has undergone significant changes due to various developments in the 19th and 20th centuries. The founding of Singapore as a British free trade port in 1819 changed the volume and direction of India-Bali trade towards and through Singapore. The continued presence of the Dutch East India Company in the archipelago, its trade for profits, the subsequent colonization of Indonesia, occupation of Bali in 1904, and the massacre of 4000 Balinese had caused a trade tilt in favour of the colonizers, which affected Bali-India trade relations.

After Independence of Indonesia in 1945 and its consolidation as a nation in 1950, and the killings of nearly 1,00,000 Balinese reformists and suspected communists in 1965, when the Island's population was only 2 million, a new chapter opened as India- Indonesia economic relations, overshadowing India-Bali relations.

The Trade Agreements between India and Indonesia in 1978, followed by many other Agreements have strengthened the economic relations between the two countries, as President Megawati had put it during her recent visit to India, "A sentimental color in the Indonesia-Indian relations is normal because of their cultural and historical relations for thousands of years which spills over to economic endeavors to achieve joint progress". Consequently, the 1970s and 1980s saw around 16 Indian manufacturing joint ventures in Indonesia (Tatas, Birlas, Bajaj, LNM, HMT Bombay Dyeing etc), almost all concentrated in Java and Sumatra. Bali was neglected and its relation with India given less importance. Bali was, spontaneously, led to shift its emphasis on tourism. Agricultural resources were sacrificed for tourism-based industries like hotels, handicrafts, wood products etc. Traditional export items like rice and other agro-based goods gave way to tourist items.

In the bilateral trade between India and Indonesia, the value of India's export was $ 697 million in 1997, 293m in 1998, 525m in 2000 and 398m in 2001 (Jan.-Oct.); and imports 689m in 1997, 722m in 1998, 1151m in 2000 and 861m in 2001. The 1997 economic crisis had turned the trade balance in favour of Indonesia. The crisis affected the rest of Indonesia (many Indian business houses like IRCON, WAPCOS closed their offices), but not Bali. Tourism flourished and played an important role in Bali's economy. It was fuelled by a constant flow of tourism dollars.

Bali had a major contribution to keeping Indonesia going in the last five years. Bali's economy is one of the most prosperous in the country. One-third of Indonesia's earnings (12.5 billion UK pounds) from tourism come from Bali. Bali was doing better than other islands and was evolving into a wealthier and westernized society. The economy was growing at 9 per cent per annum with exports around $ 400 million in 1998. Through all this, Bali retained its magnetism for bilateral trade with India particularly in textiles, garments and spices. The Indian settlers continued their trade and business.

Bali is fueled by a constant flow of tourism dollars, mainly from a popular tourist area located in Southern Bali, and supported by agricultural production and trade revenues. Tourism plays a considerable role in the Balinese economy, not only in providing accommodation, meals and services to many visitors but also in providing a market for all those arts and crafts. It still greatly depends on the export of raw materials in return for manufactured goods.

Once Bali was exporting rice, but now Indonesia is importing rice from India. What Bali produces goes to feed its own teeming population. The new trade regulations are creating new problems to Bali exporters in terms of competition and barring children from employment. The October 12, 2002 bomb blast in Kuta was an attack on the heart of Bali's economy and has had a massive impact on its economic relation with all countries. Its export-oriented industries like textiles; garments, handicrafts and wood products have been badly affected. The drastic fall in tourists has affected tourism-based industries.

The insecure climate has affected the inflow of investment. This has resulted in closure of many industries and unemployment problem, which has added to the existing problem of Muslim influx from other Islands seeking employment. Bali is Hindu in Muslim Indonesia, though it is not of the Indian kind. If the present immigration of Muslims continues, it will be a problem in future. Yes, the October 12 blast was reportedly aimed at Westerners. But, why in a Hindu Island? Was there a message to the Hindu world? Was it a reaction to what was going on in India particularly in Gujarat?

The new free-trade regulations are creating some problems for Bali's exporters, as they do not allow employing children. Most children here work for their parents, and in handicrafts industries. They believe that this is part of the process of acquiring professional skills and kind of an informal education, which has been very important in the Balinese society for centuries. Free trade will also open these village-based small-scale industries to outside competition. There is a fear whether they will be able to survive through.

Javanese interests seem to dominate in all policy decisions while the local government discriminates against the locals. When tourism is affected, Balinese return to agriculture. There is a need to build close links between agriculture and tourism for sustainable development in future. One area Balinese have to exploit to the maximum is the fishing industry and seaweed farming. There seem to be ample opportunities for job generation and export revenue. The present situation might provide a new start and change in Bali's development paradigm.

India and Bali are ancient civilizations and share lot of similarities in the field of culture and religion. Both could take steps to promote cultural, educational and religious exchanges and strengthen their bilateral relation.

(The author is vice-principal, St. Xavier's College, Kolkata. The article is based on a paper presented by him at the International Conference on Development held at Denpasar, Capital of Bali, in December 2003.)
 


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