Businessmen urged to acquire foreign trading companies
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)