Businessmen urged to acquire foreign trading companies
JAKARTA (JP): Minister of Trade Satrio Budiardjo Joedono suggested yesterday that Indonesian businessmen acquire trading companies in industrial countries to support improved penetration of the nation's products.
He told participants of a two-day national dialogue between businessmen and government officials here yesterday that competition on the world market will get fiercer after the implementation of the new principles of the General Agreement on Tariffs and Trade (GATT) early next year.
He explained that Indonesian trading companies should have affiliates in the United States, Japan and European countries.
According to Joedono, Indonesia will benefit from the freer trade following the implementation of the new GATT principles if they are prepared to take the advantages.
"The logic is that our competitive position will be better if we act as 'insiders' in targeted markets," he said during a briefing with leaders of some 150 business associations.
He added that the big markets of the newly industrialized economies such as Hong Kong, Singapore, Taiwan and South Korea deserve more attention.
According to Joedono, the implementation of GATT will result in the globalization of trade and obscure the boundaries of countries as well.
Some noted business people like the chairman of Sahid business group Sukamdani S. Gitosardjono, model-turned-entrepreneur Poppy Dharsono, Astra International's vice president Palgunadi T. Setyawan, were also present at the dialogue, which will end today.
Better chance
Joedono, also a professor of the Indonesia University, said that with the signing of the Final Act Embodying the Result of the Uruguay Round of Multilateral Trade Negotiations and the Agreement Establishing the World Trade Organization (WTO), the Indonesian business community will have a better chance to export certain products into developed countries.
He said that Indonesian commodities like wood-based products, pulp, paper, furniture, mineral products and precious metals, will have their tariffs in developed countries reduced by between 63 and 70 percent.
Regarding textiles and garments, he said that besides their quotas being phased out within 10 years, tariffs will also be lowered to a maximum of 21 percent.
He told participants of the dialogue that Indonesia's farming commodities like coffee, tea, cocoa and vegetable oil will have their tariffs lowered by between 32 and 37 percent, while fruits and vegetables will have a 35-percent tariff reduction.
The minister, however, warned Indonesian business people that the tightened control on intellectual property, such as entertainment, computer software and financial services, should make the commercial leaders more careful in handling their businesses. (09)