RI ready for early sectoral liberalization<\/p>\n
JAKARTA (JP): Indonesia is ready to help pursue an agreement
\non the liberalization of the nine \"fast tract\" sectors in the
\nupcoming leaders meeting of the Asia Pacific Economic Cooperation
\n(APEC) forum in Kuala Lumpur later this month.<\/p>\n
Indonesian Ambassador for APEC Affairs Bintoro Tjokroamidjojo
\nsaid here on Tuesday that Indonesia would table a significant
\noffer at the summit.<\/p>\n
The offer, however, will vary from sector to sector. Almost
\nfull access would be suggested for the most ready sectors, like
\nforest and fish products, while limited-access offers would be
\nproposed for the least ready sectors like gems and jewelry.<\/p>\n
\"But across the board, we will have a good offer,\" he told
\njournalists at a luncheon hosted by the Indonesia Forum.<\/p>\n
The other fast-track sectors are environmental goods and
\nservices, medical equipment and instruments, telecommunications
\nmutual recognition arrangements (MRA), toys, chemicals and
\nenergy.<\/p>\n
The nine sectors are among the 15 APEC leaders earmarked in
\nVancouver last year for early voluntary liberalization.<\/p>\n
The liberalization of the other six sectors is to be decided
\nat a later date.<\/p>\n
Bintoro said some other countries, especially Japan, appeared
\nto be backtracking from the fast-track scheme.<\/p>\n
He said fish and forestry products remained stumbling blocks.
\nThe two areas are considered politically sensitive in Japan.<\/p>\n
Japan has sought support from economies in the region,
\nincluding Indonesia, for its refusal to take part in the
\nliberalization of all the nine sectors.<\/p>\n
Bintoro said Japan apparently used its influence, especially
\nthrough its latest US$30 billion aid offer, to get support from
\nthe region.<\/p>\n
Concerted strategy<\/p>\n
Nevertheless, Bintoro predicted that the fast-track early
\nvoluntary sectoral liberalization (EVSL) would not dominate this
\nyear's APEC summit. It would be the crisis in the region and the
\nissue of antispeculation measures in financial markets that would
\nsteal the show.<\/p>\n
Suhadi Mangkusuwondo, a member of APEC's Panel of Independent
\nExperts, said the organization's leaders should take concrete
\nsteps to reduce the impacts of the crisis and prevent similar
\ncrisis to happen in the future.<\/p>\n
He said the Panel had presented a proposal to APEC leaders on
\nthe strategy to halt the downward spiral of the crisis and
\nprovide a foundation for renewed growth.<\/p>\n
The centerpiece of the strategy should be a \"Concerted Asian
\nRecovery Program,\" Suhadi said.<\/p>\n
Such a program would consist of domestic expansion though
\nsizable fiscal and monetary stimuli in virtually every country in
\nthe region, reinforcing and improving the climate for achieving
\nessential financial and other structural reforms.<\/p>\n
Policy shifts by individual countries in the region could
\nundermine market confidence. But a concerted, regionwide adoption
\nof the new strategy would effectively counter such concerns. The
\nparallel nature of any policy shift would minimize the risks and
\nmaximize the prospects for achieving successful results.<\/p>\n
\"If all the countries reduced their interest rates together,
\nthere would be no risk of destabilizing flows from one country to
\nanother. If they expanded their budget positions in tandem, there
\nwould be little fear of unfavorable investor comparisons,\" Suhadi
\nsaid.<\/p>\n
Concerted regional expansion is clearly superior to go-it-
\nalone efforts, he said. For instance, every 1 percent of
\nregionwide gross domestic product expansion throughout the
\nregion, including China and Japan, would boost growth by 2
\npercent in the crisis-hit countries.<\/p>\n
And the upcoming APEC summit would be the natural venue to
\nlaunch the new strategy, Suhadi said.<\/p>\n
M. Sadli, a former cabinet minister and now chairman of the
\nIndonesia Forum, said that although the upcoming APEC summit
\ncould not produce such a concerted strategy, the summit was still
\na prominent venue to take any decision on the future of the
\nregion.<\/p>\n
He said national leaders could consult each other on the
\ndirection of their future policies concerning the region.<\/p>\n
President B.J. Habibie, for instance, could ask Japanese Prime
\nMinister Keizo Obuchi on how Indonesia could benefit from Japan's
\nnew credit line of $30 billion, Sadli said.<\/p>\n
Habibie could also consult with Chinese leader Jiang Zemin at
\nthe summit on the likelihood of Beijing devaluing the yuan, he
\nsaid.<\/p>\n
\"Therefore, it is of utmost important for our President to
\nattend that summit.\"<\/p>\n
The government has yet to make an official announcement on
\nwhether Habibie will attend the summit or not. Habibie, however,
\nsaid recently he might attend for one day. (rid)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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