House supports call for AFTA delay<\/p>\n
JAKARTA (JP): The Indonesian Chamber of Commerce and Industry
\n(Kadin) received support on Monday from the House of
\nRepresentatives (DPR) for its call to delay the country's
\nparticipation in the ASEAN Free Trade Area.<\/p>\n
Kadin's chairman Aburizal Bakri said House members agreed with
\nthe chamber's call on the need to reschedule the full
\nimplementation of the free trade pact to at least 2005 from the
\ninitial schedule of 2003.<\/p>\n
He said that the Indonesian economy which is now in the
\nprocess of recovery still needed more time to be able to compete
\nin the free trade arrangement.<\/p>\n
\"We have to be honest. If we are not ready why should we force
\nourselves to join AFTA,\" Ical, as he is more popularly called,
\nsaid after a meeting with House Commission V which deals with
\nindustry and trade affairs.<\/p>\n
AFTA is a free trade pact among the 10 member countries of the
\nAssociation of South East Asian Nations (ASEAN), comprising
\nBrunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the
\nPhilippines, Singapore, Thailand and Vietnam.<\/p>\n
Under AFTA, ASEAN countries have already reduced import
\ntariffs on various products by a maximum of 20 percent by the
\nyear 2000 which will be further slashed to between zero and five
\npercent by 2003. The tariff reduction will provide almost no
\nbarrier for the flow of products and services to and from each
\nASEAN member countries.<\/p>\n
In July last year, the National Business Development Council
\n(DPUN) chairman Sofyan Wanandi also called on the Association of
\nSoutheast Asian Nations (ASEAN) to delay the free trade agreement
\nas most member countries are not yet ready to enter an open and
\ncompetitive business environment.<\/p>\n
He recommended delaying the implementation of AFTA until 2010
\nfrom the schedule of 2003 in a bid to give member countries more
\ntime to prepare their economies.<\/p>\n
Ical said Indonesia, like Malaysia and Thailand, should also
\nbe allowed to be exempted from the trade deal. The regional
\ngrouping has already approved Malaysia's special request to
\nmaintain protective tariffs on automobile imports until 2005 in a
\nbid to protect its national car program<\/p>\n
\"Why does Indonesia not conduct a similar measure (to protect
\nthe economy), he said, adding that Thailand had also proposed an
\nexemption to protect its agriculture.<\/p>\n
\"We have proposed this recommendation to President Abdurrahman
\nWahid but we got no serious response,\" Ical said.<\/p>\n
According to Ical, out from Indonesia's 14 strategic economic
\nsectors, only the forestry sector was considered ready for the
\nfree trade agreement.<\/p>\n
Ical said the House's Commission V has agreed to further
\ndiscuss the trade chamber's proposal to related government
\nagencies and in particular to the Coordinating Minister for the
\nEconomy. (03)<\/p>",
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