ASEAN countries agree to cooperate on capital goods
ASEAN countries agree to cooperate on capital goods
JAKARTA (JP): The governments and business agencies of the
seven members of the Association of Southeast Asian Nations
(ASEAN) agreed here yesterday to sound out regional cooperation
in the production of capital goods.
"We support the priority (of the private sector) in pursuing
cooperation for the production of capital goods," Indonesian
Coordinating Minister for Production and Distribution Hartarto
told journalists after chairing a meeting between ASEAN economic
ministers and ASEAN Chambers of Commerce and Industry (ASEAN
CCI).
Hartarto said that the ministers had agreed to involve the
ASEAN CCI in the decision making process of the annual ASEAN
economic ministers meeting, especially for the development of the
private sectors in the region.
With such an integration, ASEAN CCI Chairman Aburizal Bakrie
of Indonesia said that the chambers would work closely with the
governments in the region in pursuing cooperation in the
production of capital goods.
"ASEAN CCI will conduct a thorough study to identify strengths
and weaknesses as well as opportunities and threats in the
production of capital goods in the member countries," Aburizal
said.
He added that ASEAN CCI had appointed Indonesia's and
Malaysia's chambers of commerce and industry to conduct the
study, which will take a year to complete.
ASEAN countries -- Brunei, Indonesia, Malaysia, the
Philippines, Singapore, Thailand and Vietnam -- collectively
suffer a deficit of US$30 billion annually in their international
trading of capital goods.
"Based on the planned study, we will know which kinds of
capital goods we can cooperate in their production to serve this
ASEAN captive market and eventually reduce our collective
deficit," Aburizal said.
He called on the governments in ASEAN countries to source as
many ASEAN capital goods as possible in their projects, including
those partly financed by the private sectors.
"However, everything must be in accordance with the
multilateral trading rules of the World Trade Organization," he
said.
Meanwhile, at the meeting with Japanese Minister of
International Trade and Industry (MITI) Shumpei Tsukahara, ASEAN
economic ministers called on Japan to look into ASEAN countries
in sourcing out components for its industries.
"ASEAN has certainly comparative advantages in many areas,
especially in costs and also technology. Therefore, if Japan uses
ASEAN components, it will improve further their competitive
edge," Indonesian Minister of Industry and Trade Tunky Ariwibowo
told journalists after the meeting.
Total deficit
He noted that ASEAN countries collectively suffered a total
deficit of US$36 billion in their trade with Japan last year.
Only Indonesia managed to enjoy a surplus of $3 billion in its
trade with Japan last year, because of its huge oil and gas
exports to that country. Excluding oil and gas, Indonesia
suffered a deficit of $2 billion in its bilateral trade with
Japan.
The ASEAN and Japan ministers reaffirmed yesterday the need to
continue a program on cooperation in the supporting industries in
ASEAN, proposed by Japan at the ASEAN economic ministers-MITI
meeting in Singapore in 1993.
The ministers agreed that the program should put emphasis on
the development of small and medium enterprises, Hartarto said at
a joint press conference after the meeting.
"In this regard, the ministers agreed to task ASEAN-MITI
senior economic officials to consider how to reinforce measures
to promote the sustainability of small and medium enterprises and
exports of their products," he said.
He noted that the development of small and medium enterprises
in ASEAN would facilitate structural changes in the industry and
trade of ASEAN countries, which will eventually reduce ASEAN's
large imbalances in industrial goods trade with Japan.
The ministers also reaffirmed their commitments to maintain
close economic cooperation between ASEAN and Japan, and agreed to
hold an ASEAN economic ministers-MITI meeting in Malaysia next
year. (rid)