Most local firms unready for trade liberalization<\/p>\n
JAKARTA (JP): As Asia Pacific Economic Cooperation (APEC)
\nmembers in Japan prepare a blueprint for trade liberalization,
\nmany Indonesians do not believe the majority of companies here
\nare ready to meet the APEC requirements.<\/p>\n
A survey conducted recently by the Institute for Economic and
\nSocial Research (LP3ES) and the Center for the Study of
\nDevelopment and Democracy, revealed a perception of many
\nprofessionals that state-owned, medium and small scale companies
\nare ill-equipped to face stringent trade challenges.<\/p>\n
Respondents expressed little faith in the ability and strength
\nof Indonesian companies in the three categories surveyed: human
\nresources, management and capital.<\/p>\n
The 1,000 interviewees added their belief that only large
\nprivate companies and conglomerates are ready.<\/p>\n
The director of LP3ES, Rustam Ibrahim, explained yesterday
\nthat 59 percent of those polled -- interviewed in Jakarta, Medan
\nand Surabaya -- believe that the government's role in the economy
\nis still too large.<\/p>\n
With nearly 80 percent of them having a university degree or
\nhigher, the respondents were comprised of private sector
\nemployees (56 percent), civil servants (13 percent),
\nentrepreneurs (12 percent), legislators (10 percent), state-owned
\ncompany employees (six percent) and the rest from various
\noccupations.<\/p>\n
With answers ranging from \"very ready\", \"ready\", \"not ready\",
\n\"not at all ready\" and \"do not know\", more than 60 percent of
\nthe respondents said big companies and conglomerates were ready
\nin terms of human resources, capital and management.<\/p>\n
Prominent lawyer and political observer Todung Mulya Lubis
\nsupported the findings, saying that they reflected the views of
\nmost of Indonesian business people regarding trade
\nliberalization.<\/p>\n
He said, however, that the study also shows that there is
\ngeneral support for trade liberalization despite the current
\nconditions.<\/p>\n
The 18-member APEC forum, of which Indonesia is a member, is
\ncurrently meeting in Japan to follow-up last year's declaration
\nin Bogor, West Java, to implement comprehensive trade
\nliberalization by the year 2010 for developed countries and 2020
\nfor developing ones.<\/p>\n
On the question of which sector would benefit Indonesia in an
\nera of liberalization, respondents rated service (23 percent) and
\nindustrial manufacturing (24 percent) the highest.<\/p>\n
Rustam said the choice of services as one of Indonesia's
\nprimary sectors was quite unexpected since experts believe that
\nthis will be one of the most competitive in the future.<\/p>\n
When asked whether respondents supported the possibility of
\n100 percent foreign ownership of local companies, answers were
\nsplit, with 42 percent in agreement and 41 percent disagreeing.<\/p>\n
\"This shows the controversy among us,\" Rustam said.<\/p>\n
Mulya Lubis also noted that while there was support for trade
\nliberalization, there was also a prevailing fear of the
\nimplications for local businesses.<\/p>\n
When questioned about the current role of the government in
\nfree trade, respondents across the board felt that government
\ncontrol should be reduced.<\/p>\n
Mulya Lubis pointed out that 89 percent of all respondents
\nstressed the need to streamline bureaucracy.(mds)<\/p>",
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"sponsor": "Okusi Associates",
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