ASEAN firms must cooperate for free tarde<\/p>\n
JAKARTA (JP): The private sectors of the Association of
\nSoutheast Asian Nations (ASEAN) should forge cooperation to
\nbenefit from the free trade in the region, an Indonesian
\nexecutive has said.<\/p>\n
Setyanto P. Santosa, secretary general of the ASEAN Chambers
\nof Commerce and Industry (ASEAN-CCI) said yesterday the
\nestablishment of joint ventures would, for example, help the
\nASEAN private companies benefit from the ASEAN Free Trade Area
\n(AFTA) due to be implemented in the year 2003.<\/p>\n
The former president of the state-owned company Telkom was
\nspeaking to the press after addressing a seminar titled
\nEnhancement of Trade and Investment Cooperation in Southeast
\nAsia: Opportunities and Challenges towards ASEAN-10 and Beyond,
\norganized by the ASEAN secretariat and the United Nations
\nEconomic Social Commission for Asia and the Pacific.<\/p>\n
\"When AFTA started, all companies were free to enter the ASEAN
\nmarket. But I think ASEAN companies should mostly benefit from
\nthe free market. And one way to benefit is for them to set up
\njoint ventures,\" he said.<\/p>\n
ASEAN, with a total population of about 430 million, is the
\nthird largest market in Asia after China and India.<\/p>\n
He underlined the importance of the private sector's role in
\nimproving ASEAN competitiveness and generating economic growth
\nbecause the ASEAN governments would in turn only act as a
\nfacilitator.<\/p>\n
He said in facilitating greater trade and investment inflows,
\nthe ASEAN-CCI should help strengthen the domestic private sector,
\nact as a mechanism for a dialog with policy makers at domestic
\nand regional levels, become the interface between foreign and
\nlocal investors in the domestic economy and serve as the
\ncommunication channel among the world's private sectors.<\/p>\n
Investment<\/p>\n
Toshikazu Hamada, an economist from Japan's Sophia University,
\nsaid at the seminar that AFTA was formed for two reasons.<\/p>\n
The first was to reveal the comparative advantages more
\nclearly among member economies through a well-functioned price
\nmechanism by the gradual border tax.<\/p>\n
The second was that tariff reduction forced member economies
\nto utilize wisely their factor endowments.<\/p>\n
\"ASEAN countries have to work together to utilize all the
\nresources for economic development in building infrastructure,
\ndeveloping rural areas, increasing productivity, rationalizing
\ninstitutions and modernizing agriculture,\" he said.<\/p>\n
He also said harmonizing the legal and tax systems and
\nadministrative procedures to ASEAN standard would induce foreign
\ndirect investments into AFTA and surely opened new horizons of
\neconomic prosperity for the region.<\/p>\n
\"As long as ASEAN can maintain foreign investors' confidence
\non the regional growth with the combined efforts of improving
\nproductivity and fostering supporting industries, it can invite
\nand channel more foreign direct investment inflows,\" he said.
\n(bnt)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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