Constructive strategies vital to service trade<\/p>\n
JAKARTA (JP): Indonesia must start constructing strategies to
\nmeet the challenges and opportunities of free trade in services
\nand to cope with the problems faced by developing countries,
\nMinister of Finance Mar'ie Muhammad says.<\/p>\n
\"Domestic providers of services must improve their strength
\nand competitiveness because the domestic market will soon be open
\nto international competitors,\" he said after a Worldnet panel
\ndiscussion held jointly by the Indonesian Economists
\nAssociation's Jakarta chapter and the United States Information
\nService.<\/p>\n
Mar'ie said that such constructive strategies include not only
\nimprovements in hardware facilities but also ways to acquire
\ninformation and technology from developed markets.<\/p>\n
Mar'ie pointed out that Indonesia, like other developing
\ncountries, is running a current account deficit in service
\ntransactions, \"despite the fact that we have achieved a
\nremarkable export performance, a positive current account in the
\ntrade of goods and a positive balance of payments\".<\/p>\n
Another problem to surmount, he said, lies in the domestic
\nservice sector, which is still in the early stages of development
\nand not yet sophisticated enough to win competition against
\ninternational counterparts.<\/p>\n
Mar'ie also pointed out that unlike the trade in goods, the
\ntrade in services recognizes only non-tariff barriers.<\/p>\n
\"This means that the implementation of an 'infant industry'
\nargument in the services sector may only be exercised through
\nnon-tariff barriers,\" he said.<\/p>\n
Boost<\/p>\n
Mar'ie said the General Agreement on Tariffs and Trade (GATT),
\nthe General Agreement on Trade in Services (GATS) and the
\ncommitments reached through the Asia Pacific Economic Cooperation
\n(APEC) forum were instruments to help boost Indonesia's
\ncompetitiveness.<\/p>\n
Indonesia is one of the signatories of the GATS -- signed in
\nMarrakesh in April last year -- which involves a commitment to
\ngradually open the service sector as part of the move towards
\nfreer trade.<\/p>\n
Yesterday's Worldnet dialog involved Washington-based Gary
\nHufbauer, a senior fellow at the Washington-based Institute for
\nInternational Economics and Indonesian panelists Miranda S.
\nGoeltom from the office of the Coordinating Minister for Economy
\nand Finance, Rizal Ramli from the Econit Advisory Group, Ruddy
\nKoesnadi from Prasetyo, Utomo & Co., H.S. Kartadjoemena of Bank
\nIndonesia and Harry H. Diah of AIA Insurance Indonesia.<\/p>\n
Hufbauer acknowledged that the United States would push the
\nservice sector within GATT principles.<\/p>\n
He mentioned the audiovisual and entertainment sectors as the
\nleading services which his country could offer in the free-trade
\nera of services.<\/p>\n
\"Indonesia has big potential in the telecommunications and
\ntransportation sectors,\" he said, adding that improvements in
\nthese services could support the tourism industry, which is
\nalready quite advanced. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/constructive-strategies-vital-to-service-trade-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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