'We can't escape globalization anymore'<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Teni Wahyuningsih, 20, a business administration student at
\nBandung's Padjadjaran University:<\/p>\n
The full implementation of AFTA (ASEAN Free Trade Area) next
\nyear is kind of a dilemma for us. It is good for consumers, as we
\nwill have more choices of products at cheaper prices. But,
\nunfortunately, it is not good for local businesses.<\/p>\n
Our businesses are not yet ready to face head-on competition.
\nWe can see that most of the products produced by our local
\nindustries have often been on the losing side when it comes to
\ncompeting with foreign products, even before AFTA.<\/p>\n
Are they really well prepared for this? I doubt it.<\/p>\n
I think the government should delay the full implementation of
\nAFTA for maybe two or three years, during which the government
\ncould help, through different policies, strengthen local
\nbusinesses in order to allow them to better compete with foreign
\nproducts.<\/p>\n
Yolanda, 22, a student at Trisakti University:<\/p>\n
To be honest, a year after the implementation of AFTA, I
\nhaven't seen significant changes in terms of products in the
\nmarket. I mean, if I'm not mistaken, Indonesia's willingness to
\nenter AFTA was based on the assumption that once it took effect
\nthe price margin between locally and foreign-made products would
\nnarrow.<\/p>\n
But I have not seen that happening since AFTA was partly
\nintroduced earlier this year. The price gap remains wide.<\/p>\n
Certainly, some foreign-made products sold here are not very
\nexpensive compared to local products. But they are mostly unknown
\nbrands. We still have to spend a lot to purchase high-quality
\nforeign goods.<\/p>\n
If foreign products remain expensive next year, I think we
\nshould reconsider our position in AFTA. If we aren't gaining
\nanything, why should we keep participating in AFTA?<\/p>\n
Gunadi Sindhuwinata, the president director of PT Indomobil
\nSukses International:<\/p>\n
Indonesia reduced its tariffs on automotive components to 5
\npercent early this year in line with the soft launch of AFTA.
\nThis is too fast, since other countries such as Malaysia and
\nThailand have yet to reduce their tariffs. Thailand will only
\nlower tariffs next year, while Malaysia has delayed it until
\n2005.<\/p>\n
Many people said that AFTA would become a nightmare for our
\nautomotive industry. But, for me, the impact of AFTA on our
\nautomotive industry is still unclear since there has yet to be a
\nstudy of it.<\/p>\n
To survive the tough competition under AFTA, we should
\nstrengthen our supporting component industry. We don't have as
\nmany automotive component producers as in Thailand and Malaysia.
\nIf we had a strong component industry supporting our automotive
\nindustry, we would not need to import components from other
\ncountries. This would enable us to trim our production costs.<\/p>\n
Teddy Sutendi, 26, an alumnus of the Bandung Institute of
\nTechnology, currently employed at state-owned electricity company
\nPT PLN:<\/p>\n
I positively welcome AFTA because not only will it benefit
\nconsumers but also force our industries to improve their
\nefficiency to compete with foreign products.<\/p>\n
In the short term, I think, foreign products will sweep up
\nlocal products, forcing local industries to struggle to survive.<\/p>\n
In the long run, however, I believe local industries will
\nimprove their performance, because they will be left with no
\nchoice but to be able to compete internationally.<\/p>\n
On top of that, it's the consumers who will benefit the most
\nfrom AFTA, since the flow of imported goods will force prices
\ndown.<\/p>\n
The consumers will also have more options because products
\nwill be coming from more than one country.<\/p>\n
But I think the government should put more emphasis on efforts
\nto develop our agricultural sector. The sector has a high level
\nof resilience, even when other sectors were suffering during the
\ncrisis.<\/p>\n
More financial and technical assistance should be given to
\nthose involved in that sector to help them cope with market-
\nfriendly mechanisms, such as AFTA or other similar free-trade
\npacts.<\/p>\n
Meilia Sukma, 28, a postgraduate student at a Jakarta
\nuniversity and an employee at a foreign embassy in the capital:<\/p>\n
One thing that is for sure is that we cannot run away from
\nglobalization, and AFTA is part of globalization.<\/p>\n
So rather than voicing objections, we should think more
\nseriously about how to make the best of it. We surely do not want
\nto be isolated from what is going on in the world.<\/p>\n
I know that participating in AFTA will be risky, especially
\nfor our shaky local businesses. But avoiding it would definitely
\nhave bigger consequences.<\/p>\n
Thanks to AFTA, consumers will have more options when it comes
\nto products. And producers will compete in terms of their prices,
\nwhich in the end will benefit consumers.<\/p>\n
As far as local industries are concerned, they should regard
\nAFTA as an opportunity to test their ability to compete with
\noverseas businesses. They have to produce better quality products
\nat affordable prices. Otherwise, they will lose their market
\nshare.<\/p>\n
The government, however, has to help local producers eliminate
\nsmuggling or at least minimize the volume of smuggled goods.<\/p>\n
Local manufacturers are already finding it hard to compete
\nwith legally imported products, so don't make their lives harder
\nby doing nothing to stop smuggling.<\/p>\n
Yulianti Pangesti, 32, a housewife who resides in Tangerang,
\nBanten province:<\/p>\n
Since earlier this year -- I do not know whether it is because
\nof AFTA -- I have noticed that the prices of imported products
\nhave edged closer to the prices of similar products made locally,
\nwhich is good.<\/p>\n
I think all housewives will positively welcome the full
\nimplementation of AFTA next year. I would even encourage the
\ngovernment to enter other free-trade pacts because free trade
\nwill lead to a decrease in the price of goods, with every
\nmanufacturer racing to lower prices to attract customers.<\/p>\n
All these years, the government's policies have only focused
\non the interests of companies. I think it's time to treat
\nconsumers better and put us where we belong.<\/p>\n
The government should therefore be encouraged to produce
\npolicies that benefit consumers.<\/p>\n
Suharto, secretary-general of the Association of Rubber
\nProducers in Indonesia:<\/p>\n
We don't expect a significant impact from AFTA on the
\nIndonesian rubber industry, since some 92 percent of our annual
\noutput of 1.6 million tons of crude rubber is exported to
\ncountries outside of ASEAN.<\/p>\n
These countries include the United States, Japan, European
\ncountries and China.<\/p>\n
Total domestic demand for crude rubber is 140,000 tons per
\nyear, and of that amount only a small percentage is imported from
\nThailand and Malaysia. Therefore, AFTA will have a slight impact,
\nif any, on the domestic rubber market.<\/p>\n
Domestic rubber production is more than enough to meet
\ndomestic demand.<\/p>",
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