Indonesian Political, Business & Finance News

Action plan vital for best results from A-A Summit

| Source: JP

Action plan vital for best results from A-A Summit

Zakki P. Hakim, The Jakarta Post, Jakarta

Governments from Asian and African countries must quickly come up
with an action plan to create stronger economic ties so that the
recent New Asia-Africa Strategic Partnership (NAASP) bears fruit.

Senior economist at the Centre for Strategic and International
Studies (CSIS), Hadi Soesastro, said the action plan must include
steps to facilitate the private sector in Asia and Africa. He
prioritized direct shipping routes and direct flights between
both continents to make it easier for businessmen meet their
counterparts.

He added that the African market has yet to be a priority due
to its small market size and the absence of direct shipping
routes.

Therefore, he said, the government could facilitate private
sector by, for instance, providing a subsidized shipping line to
cut costs in exporting to Africa.

Speaking on the sidelines of the Afro-Asian Movement and The
World of Tomorrow seminar, jointly held by The Jakarta Post and
CSIS, Hadi took Malaysia as an example. Malaysia, he said, has
had a direct flight from Kuala Lumpur to Johannesburg for years
to help connect their businessmen with the African private
sector.

"I believe the direct flight must be booking loses rather than
profits, but the Malaysian government has subsidized it. It's the
cost that must be paid for opening a new trade market," he said.

To narrow the gap between both continent's businesses, the
Indonesian Employers Association (Apindo) chairman Sofjan Wanandi
urged the two to get to know each other better.

"To be frank, we have never had a relationship with African
businessmen before," he said.

As a follow-up to last week's Asian-African Summit, members of
the Indonesian Chamber of Commerce and Industry (Kadin) will
visit Africa later this year. "The door is open, now it's time
for us to use the opportunity," Sofjan said.

Minister of Trade Mari E. Pangestu had earlier said the
government would start facilitating partnerships with Africa by
providing more information, conducting market research and
encouraging the pooling of exports to produce a sufficient volume
of trade.

"To increase our trade, we will have to consider a number of
gateways to penetrate the Southern, Western or Northern African
markets. We must also have more promotion and information and
work on financing and transportation links," she said last week.

During Tuesday's seminar, former foreign minister Ali Alatas
said that although the 1955 Bandung Spirit had inspired Asian and
African countries to obtain their independence, 50 years later
many nations of the two continents still had no economic freedom.

"Political independence without economic independence can in
no way free the teeming millions of the developing world from the
poverty trap they are in," Ali said.

He concluded that challenges such as true independence,
justice and equitable development, can only be met if Asian-
African nations summon the necessary political will, pool their
resources and act together in addressing these challenges.

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