1. Human Capacity Development Strategy and Activities in Indonesia and the Region Ken OKANIWA Minister for Economic Affairs and Development Embassy of Japan in Indonesia June 4, 2008

2. 2 Today’s Topics Japan’s Basic Objective of Student Exchange Japan’s Basic Objective of Student Exchange Plan to accept 100,000 Student Plan to accept 100,000 Student Japan’s New Policy Japan’s New Policy Asian Gate Way InitiativeAsian Gate Way Initiative Plan to accept 300,000 StudentPlan to accept 300,000 Student Japan’s Activity in Indonesia Japan’s Activity in Indonesia Embassy, JICA, JBIC, and Japan Funds in MDBsEmbassy, JICA, JBIC, and Japan Funds in MDBs

3. 3 Japan’s Objective of Student Exchange To promote mutual understanding between Japan and foreign countries and build human networks To promote mutual understanding between Japan and foreign countries and build human networks To nurture Japanese students with global outlook and shape and open vibrant society To nurture Japanese students with global outlook and shape and open vibrant society To internationalize Japanese universities and increase their international competitiveness To internationalize Japanese universities and increase their international competitiveness To make an intellectual contribution to the international community To make an intellectual contribution to the international community

4. 4 Plan to Accept 100,000 International Student In 1983, Government of Japan presented “ Plan to Accept 100,000 International Student in the early 21 st century ” In 1983, Government of Japan presented “ Plan to Accept 100,000 International Student in the early 21 st century ” 1983: 10,428 students 1983: 10,428 students 2003: 109,508 students 2003: 109,508 students 2007: 118,498 students 2007: 118,498 students New Policy Achieved !

5. 5 Number of International Students by Source of Funds

6. 6 International Students by Region of Origin Europe 3,307( 2.8%) 【 1,191( 12.1%) 】 Africa 935( 0.8%) 【 520( 5.3%) 】 North America 2,076( 1.8%) 【 171( 1.7%) 】 Oceania 563( 0.5%) 【 187( 1.9%) 】 Middle East 667( 0.6%) 【 398( 4.0%) 】 Asia 109,291 (92.7 %) 【 6,743(68.3%) 】 South America 1,088( 0.9%) 【 659( 6.7%) 】 As of May 1, 2006 Total: 117,927 Note: Figures in 【 】 show the number of Japanese Government scholarship students

7. 7 Number of International Students by Nationality Country or Region Number of Student % of Total Country or Region Number of Student % of Total China71,27760.2%Germany4490.4% R of Korea 17,27414.6%U.K.3700.3% Taiwan4,6864.0%Russia3370.3% Vietnam2,5822.2%Australia3300.3% Malaysia2,1461.8%Brazil3160.3% Thailand2,0901.8%Canada3070.3% U.S.A.1,8051.5%Cambodia2830.2% Indonesia1,5961.3%Egypt2830.2% Bangladesh1,5081.3%Laos2640.2% Nepal1.3091.1%Iran2290.2% Sri Lanka 1,1811.0%Turkey1690.1% Mongolia1,1100.9%Uzbekistan1670.1% Myanmar8490.7% Saudi Arabia 1590.1% Philippines5380.5%Sweden1450.1% India4800.4%Others3,7883.2% France4710.4%Total118,498100.0%

8. 8 Acceptance of International Students in Major Countries JapanU.S.A.U.K.GermanyFranceAustralia Students enrolled in institution of higher education 3,617thousands(2006)10,312thousands(2003)1,428thousands(2003)2,019thousands(2003)2,232thousands(2004)945thousands(2004) International Students (Number of Acceptance) 117,927(2006)564,766(2005)356,080(2005)248,357(2005)265,039(2005)228,555(2004) International Students on Government Scholarship 9,869(2006)2,501(2005)6,120(2005)5,534(2005)11,910(2006)3,108(2004) Ratio of international Students 3.3%5.5%24.9%12.3%11.9%24.2% Remaining far short of international standards

9. 9 Japan’s New Policy - Asian Gate Way Initiative - May 16,2007 Objectives of the Initiative Objectives of the Initiative 1. To incorporate Asia ’ s growing and vibrant economy into Japan and to achieve new “ creativity and growth. ” 2. To play a responsible role in the development of Asia and its regional order 3. To create a “ beautiful country ” which is attractive, trustworthy and respected

10. 10 Asian Gate Way Initiative Ten Major Policy Priorities 1. Change in aviation policy to achieve “ Asian Open Skies ” 2. Implement a program for streamlining trade measures 3. Restructure policy for foreign students for Japan to serve as a hub for human resource network in Asia Maintain a certain share of international students worldwide (about five percent), and promote academic-industry collaboration to welcome international students. Also, strengthen overseas institutions to support potential students to come to Japan. 4. Further open up universities to the world Target educational funds and improve evaluation of universities to become more international Target educational funds and improve evaluation of universities to become more international 5. Create a financial and capital market highly attractive to Asian customers 6. Transform agriculture into a successful growth industry during the time of globalization 7. Create an “ Asian Gateway Special Zone ” 8. Implement concrete policies in line with a comprehensive strategy for “ creative industries ” 9. Promote Japan ’ s attractiveness overseas 10. Strengthen Japan ’ s central role in promoting regional study and cooperation for solving common problems

11. 11 Japan’s New Policy 2 Policy Speech by Prime Minister Yasuo Fukuda to the 169th Session of the Diet (Jan 18, 2008) Policy Speech by Prime Minister Yasuo Fukuda to the 169th Session of the Diet (Jan 18, 2008) We will formulate and implement a “ Plan for 300,000 Exchange Students," and will increase the number of highly capable foreign nationals at graduate schools and companies in Japan, through collaboration among industry, academia and the government.

12. 12 Japan’s Activities in Indonesia Embassy (Gov. Scholarship) Embassy (Gov. Scholarship) Japan International Cooperation Agency Japan International Cooperation Agency (JICA: Grant and T.A. Project) (JICA: Grant and T.A. Project) Japan Bank for International Cooperation Japan Bank for International Cooperation (JBIC: ODA Soft Yen Loan Project) (JBIC: ODA Soft Yen Loan Project)and Japan Funds in MDBs Japan Funds in MDBs

13. 13 Japanese Government Scholarship Total Japanese Gov. Scholarship % World World118,49810,0208.5% Indonesia Indonesia1,59666641.7% %1.3%6.6% Number of International Students (2007) Indonesia Japanese Gov. has offered scholarship for Indonesian students since 1943. Around 4,000 Indonesian students have been to Japan as Japanese Gov. scholars.2004200520062007 Number of Indonesian Students with Japanese Gov. Scholarship 555643659666

14. 14 Number of Training participants through JICA Grant Project WorldwideIndonesia 2006*9,002**634** Total186,80014,424 Indonesia Started the first dispatch in 1956 Started the first dispatch in 1956 Top recipient country of training scheme Top recipient country of training scheme * Japanese Fiscal Year 2006(Apr.1 2006- Mar.31, 2007) ** Including participants under on-going courses

15. 15 Number of Scholarship (Long-Term Training) participants through JICA Grant Project WorldwideIndonesia 2006*295**39** Total68582 * Japanese Fiscal Year 2006(Apr.1 2006- Mar.31, 2007) ** Including participants under on-going courses

16. Fellowship by ODA Loan (1) ～ Objectives ～ Until now, more than 1000 fellows have studied in Japan entitled Until now, more than 1000 fellows have studied in Japan entitled ① PHRDP (Professional Human Resource Development Project) Based on the National Medium-term Development Plan (RPJM), national and local government staffs are dispatched to Japan to study several policy-related issues (Policy Management, Economic Development, Enhancement of Science and Technologies, Decentralization, etc.) Based on the National Medium-term Development Plan (RPJM), national and local government staffs are dispatched to Japan to study several policy-related issues (Policy Management, Economic Development, Enhancement of Science and Technologies, Decentralization, etc.) ② Capacity Building for each universities Lecturers are dispatched to Japanese Universities (Master course, Doctor course) to skill up their teaching/research abilities. Lecturers are dispatched to Japanese Universities (Master course, Doctor course) to skill up their teaching/research abilities.

17. 17 Fellowship by ODA Loan (2) ～ PHRDP ～ In 1989, Fellowship by ODA Loan started by “ Science and Technology Manpower Development Program. In 1989, Fellowship by ODA Loan started by “ Science and Technology Manpower Development Program. This project was followed by “ PHRDP ” This project was followed by “ PHRDP ” (On-going Phase III: US$ 90mil) (On-going Phase III: US$ 90mil) Until now, more than 900 fellows have been dispatched to Japan by this kind of program. Until now, more than 900 fellows have been dispatched to Japan by this kind of program. After studying in Japan, Fellows usually went back to their previous post in their government institute. They have contributed to the enhancement of the personal quality and policy management ability (Promotion of Decentralization, improvement of Governance). After studying in Japan, Fellows usually went back to their previous post in their government institute. They have contributed to the enhancement of the personal quality and policy management ability (Promotion of Decentralization, improvement of Governance).

18. 18 Fellowship by ODA Loan (3) ～ Capacity Building for each universities ～ Up to now, more than 100 fellows Up to now, more than 100 fellows from 6 Indonesian universities from 6 Indonesian universities have studied in Japan. have studied in Japan. 1994 ～ 01 Syiah Kuala University 1994 ～ 01 Syiah Kuala University 1995 ～ 00 Institute of Technology 1995 ～ 00 Institute of Technology in Bandung in Bandung 1996 ～ 97 Bogor Agricultural University 1996 ～ 97 Bogor Agricultural University 1999 ～ 01 Gadjah Mada University 1999 ～ 01 Gadjah Mada University 2006 ～ Syarif Hidayatullah State 2006 ～ Syarif Hidayatullah State Islamic University （ on-going ） Islamic University （ on-going ） 2008 ～ Hasanuddin University （ on-going ） 2008 ～ Hasanuddin University （ on-going ） After studying in Japan, they went back to their universities and work as professor or lecturer. After studying in Japan, they went back to their universities and work as professor or lecturer.

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