EU industrialists back trade barrier removal
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)