EU industrialists back trade barrier removal
JAKARTA (JP): Industrial representatives of the European Union (EU) supported yesterday the proposal for the need of removing trade barriers on exports from Indonesia and other Southeast Asian countries to Europe.
Martin Bangemann, a member of the European Commission of the EU, said yesterday that the EU industrialists strongly backed the proposal to review barriers against exports from Southeast Asia.
The elimination of the protective measures was important to help the region's countries mend their ailing economies, Bangemann said.
"The removal and loosening of the foreign trade constraints, such as the antidumping law, would help Indonesia and other Asian countries increase their exports in order to recover from the currency crisis," Bangemann said.
He was talking after the closing of a two-day meeting of the Association of South East Asian Nation (ASEAN)-EU industrialists.
Bangemann said both ASEAN and EU industry representatives at the meeting strongly supported reforms that remove constraints on foreign trade and investment and provide stable, transparent and straightforward application of the rules.
The EU groups 15 countries, including Germany, France, Italy, the United Kingdom, Spain, Sweden and Netherlands.
Goran Lindahl, who jointly cochaired the meeting with Indonesian Chamber of Commerce and Industry (Kadin) chairman Aburizal Bakrie, said yesterday that EU participating companies would increase their investment in Indonesia and the region soon.
"Now is the right time to invest in Asian countries, as the currency depreciation had made the countries extremely competitive," Lindahl, also the president and CEO of ABB Asea Brown Boveri, said.
European investors could expand throughout the region, which had been badly affected by the currency crisis, he said.
"In the short term, there would be more investment from the west to the east, as there would be more trade conducted from the east to the west as the result of the crisis," he said.
He said Indonesia must make use of the depreciating currency to increase its export capacity and its investment climate.
The meeting, which started Thursday, discussed ways to promote mutually beneficial business, trade and technology relations between the two economic regions.
Indonesian Coordinating Minister for Production and Distribution Hartarto represented the ASEAN economic ministers during the meeting while Martin Bangemann represented the EU.
During the two-day meeting, participants, which included 20 business leaders from EU member countries, also discussed issues regarding the current financial crisis and long-term economic development.
The EU participants indicated that they were ready to contribute to restore stability and boost confidence by actively exploring the many investment opportunities in the ASEAN region.
Minister Hartarto said the EU industrialists were confident that Indonesia had great potential for long-term investment.
Bangemann said he was optimistic that the Indonesia economy would fully recover, especially through bilateral and multilateral cooperation.
He said there was a clear-cut belief that the crisis will be overcome through economic cooperation.
Asked if EU creditors would roll over maturing foreign loans given to Indonesian businesses, Bangemann said he was confident that creditors would be flexible in dealing with their debtors.
"It would be foolish for them to be less flexible on the maturing loans, as they would lose their own interests secured here," he said.
Kadin vice chairman for industry Fadel Muhammad said yesterday the meeting was a way for Indonesia to lobby the European Union to roll over its foreign loans.
The grouping agreed to set up their second meeting next April in Europe. (das)