Minister promotes AICO plan<\/p>\n
JAKARTA (JP): Minister of Industry and Trade Tunky Ariwibowo
\nsaid yesterday that the ASEAN Industrial Cooperation Plan (AICO)
\nwould facilitate joint ventures and other business alliances in
\nthe region.<\/p>\n
\"The diversity of economies in the region offers tremendous
\nopportunities for cross-border 'complementation' of business
\nactivities. This is your opportunity,\" he said at a seminar on
\nthe economic outlook of Southeast Asia and China, which was
\norganized by The Jakarta Post in cooperation with the Asia
\nPacific Economics Group and Qantas of Australia.<\/p>\n
According to the plan, import tariffs on certain industrial
\nproducts for member countries would immediately fall to between
\nzero and 5 percent and non-tariff incentives would be granted.<\/p>\n
The agreement, which was signed at the end of the three-day
\ninformal meeting of ASEAN economic ministers in Singapore last
\nApril, replaces the previous regional industrial cooperation
\narrangements, including the 1988 brand-to-brand complementary
\nscheme for the automotive industry.<\/p>\n
In addition to AICO, he said, preparations were underway for an
\nASEAN Investment Area agreement, which is expected to stimulate
\ndirect intra-ASEAN investment and other foreign investment.
\n\"Southeast Asia is changing and advancing individually and
\ncollectively,\" he said.<\/p>\n
He said the mutually beneficial scheme should become the basis
\nof alliances between countries, including the ASEAN member
\ncountries.<\/p>\n
He said the yndustrialized countries should help the
\ndeveloping countries to promote their economies . \"They should
\nalso open their markets widely for products from developing
\ncountries and should not impose any kind protection,\" he said.<\/p>\n
He said the deteriorating condition of developing countries'
\neconomies would also harm industrial countries. \"The developed
\ncountries need the developing ones to market their products,
\nparticularly capital goods,\" he said.<\/p>\n
\"The current process of trade liberalization, therefore,
\nshould not be pursued at the expense of developing countries,\" he
\nsaid.<\/p>\n
He said the industrialized countries should allow the
\ndeveloping countries more time to liberalize their service
\nsectors so they can compete.<\/p>\n
When asked about the controversial Indonesian car policy, he
\nsaid it was a part of the government's program to become a leader
\nin technology. \"We must be able to develop our technology so that
\nwe become a leader instead of a follower, as we are now. We were
\nlate to develop automotive technology, but we have to start now,\"
\nhe said.<\/p>\n
Technological development, he said, was also needed to sharpen
\nthe competitive edge of Indonesian exports against other
\ncountries' products.<\/p>\n
\"What we have to do is promote our exports. We should not
\npursue a policy of controlling imports,\" he said.<\/p>\n
But he added that the government would impose technical
\nstandards for imported goods entering the Indonesian market.<\/p>\n
He told reporters that the government was working on the
\nstandards and would hopefully issue them this year.<\/p>\n
\"Other countries impose their standards on our export goods. I
\nthink we should also do the same with a view to protecting our
\nconsumers,\" he said.<\/p>\n
He would not elaborate on the kinds of standards to be issued
\nby the government. (13)<\/p>",
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