Service industries told to anticipate liberalization drive<\/p>\n
Adianto P. Simamora, The Jakarta Post, Jakarta<\/p>\n
Coordinating Minister for the Economy Dorodjatun Kuntjoro-Jakti
\nurged the country's service-related industries to boost
\nefficiency and cooperation among themselves in order to compete
\nwith others in the region as the trade in services would be
\nliberalized in the future.<\/p>\n
Speaking to East Java businessmen over the weekend, he said
\nthat six members of the Association of Southeast Asian Nations
\n(ASEAN) had agreed to eliminate restrictions on the trade in
\nservices.<\/p>\n
He said that although the grouping had yet to agree on a
\nschedule for the liberalization drive in the service sector,
\nlocal businesses had to start preparing now.<\/p>\n
He said that one way to boost the competitive strength of
\nlocal companies when facing overseas players was by setting up a
\nbusiness consortium.<\/p>\n
In 1995, six ASEAN members, Indonesia, Thailand, Malaysia,
\nSingapore, the Philippines and Brunei Darussalam, agreed to
\nliberalize the service industry with a plan called the ASEAN
\nFramework Agreement on Services (AFAS).<\/p>\n
Among the service-related industries to be affected by the
\nplan are tourism, telecommunications, financing, construction and
\ntransportation.<\/p>\n
The service sectors make up a significant proportion of the
\neconomies of the ASEAN members.<\/p>\n
This is a continuation of the ASEAN Free Trade Area, which was
\nput into effect early last year, under which each founding member
\ncountry of the grouping reduces its import tariffs on the trade
\nof goods.<\/p>\n
The liberalization drive is expected to boost trade and
\ninvestment activities in the region.<\/p>\n
Dorodjatun said that the opening up of the service sector
\nwould give companies from ASEAN member countries greater
\nopportunities to expand businesses here without any barriers.<\/p>\n
Given the importance of the services sector, some nineteen
\nmembers of the World Trade Organization (WTO) have also submitted
\nformal requests to Indonesia to open up its services sectors,
\nfrom communicating services to financial services.<\/p>\n
Those filing the requests include the United States, Japan,
\nAustralia, Singapore, Taiwan, South Korea, Switzerland, Canada,
\nChina, Chile and Hong Kong.<\/p>\n
Indonesia, meanwhile, has yet to submit any initial requests
\nto the 145 WTO member countries as business players and the
\ngovernment were discussing the issue.<\/p>\n
Indonesia has so far been a net importer in the services
\nsector.<\/p>\n
Data from Bank Indonesia reveals that Indonesia suffered a
\nUS$15.8 billion deficit in the export and import of services in
\n2002, down a bit from $17.051 billion in 2000.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/service-industries-told-to-anticipate-liberalization-drive-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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