Thu, 25 Feb 2010

Jakarta (ANTARA News) - Indonesia`s competitiveness problem in facing the ASEAN-China Free Trade Area could be a "shock therapy" that would prompt the acceleration of bureaucratic reform, an academic observer said.

"ACFTA is a kind of shock theraphy on how to create a policy in Indonesia, so the sectoral management can no longer be applied, therefore it can accelerate the bureaucracy reform," the Habibie centre`s Assessment and Research Director, Dewi Fortuna Anwar said here Wednesday after a discussion on ACFTA`s implications for the country`s economy.

Dewi said in view of the many free trade agreements Indonesia was going to face, the government could no longer make superficial familiarization efforts.

"The people now no longer want superficial relationships between state and society, especially with regard to FTA which concerns the people`s inalienable right to live," she said.

In the meantime, domestic trade affairs director general at Trade Ministry, Subagyo said the government was trying to minimize the negative impact of ACFTA`s implementation.

There were three strategies that had been and would be implemented by the government relating to ACFTA, namely the strengthening of competitiveness, security of domestic market and export strengthening efforts, Subagyo said. (*)