Economic impact of Beijing's threat

Economic impact of Beijing's threat

Ms. Dewi Fortuna Anwar's article titled Implications of China- Taiwan crisis (The Jakarta Post, page 1, March 14, 1996) compelled me to present a more pertinent picture in terms of economic impact on the region of Southeast Asia if Beijing's reckless actions against Taiwan go unchecked.

China's threat to Taiwan is not an internal affair, especially when considering the welfare and prosperity of Southeast Asian countries with which Taiwan has intensive economic interactions, and because of the area's geographical vicinity. In short, this is a "Global Village" which has no clear boundary and in which your business is everybody's business.

There are now around 200,000 workers from Southeast Asian countries, including more than 6,000 from Indonesia, employed by the various industries in Taiwan. Suppose each worker has to support four persons' living expenses in their home countries, then the welfare of over one million people would be immediately put into jeopardy if war breaks out across the Taiwan Strait.

Two-way trade between Taiwan and ASEAN member countries last year amounted to US$25.38 billion. Indonesia has been enjoying surplus in its trade with Taiwan since 1991. If war breaks out, the country's economy would be surely affected to a certain extent.

Until Dec. 31, 1995, the approved amount of Taiwan's investment in ASEAN member countries reached $27.85 billion. Taiwan's investment in Indonesia, which stands at $8.15 billion, is the biggest among the member countries. The capital would stop coming in if security in this part of the world was in doubt.

ROC on Taiwan has provided an entrepreneurship training program for youths from several ASEAN member countries. There are now 180 Indonesian youths attending this program in Taiwan. Another 360 from Indonesia will be joining this program of two years soon. We do hope they will be able to finish the training and return to Indonesia to start their own business in related fields.

We also have to seriously ponder the problem that possible war refugees would bring to neighboring countries.

We sincerely hope, as Ms. Anwar does, that the present crisis across the Taiwan Strait will pass without causing further damage.

DAVID Y. S. TZOU

Information Director

Taipei Economic and Trade Office

Jakarta