Free trade must not sacrifice the poor: NGOs
By T. Sima Gunawan
JAKARTA (JP): A regional free trade zone in the Asia Pacific region is okay but not at the expense of marginal groups, such as workers and the poor people, says a spokesman for a forum of Indonesian non-government organizations (NG0s).
Asmara Nababan, secretary for the International Forum of NGOs on Indonesian Development (INFID), said in a recent interview that people from all walks of life have the right to enjoy the benefits of trade liberalization measures.
The benefits should not be restricted only to the business community, Asmara said.
"Trade liberalization is inevitable," he told The Jakarta Post. "What we should take into account are the efforts to adjust to the global market, which must not deprive the people of their rights."
The proposal of a free trade area is one of the topics to be discussed at the ministerial meeting of the Asia-Pacific Economic Cooperation (APEC) forum which opens in Jakarta today.
Asmara said the move towards a regional free trade area will spur greater business competition. The government's task, he said, is to ensure that this must not lead to the suppression of wages by companies in order to slash their business costs.
He said workers should also be given full freedom to organize, thereby becoming more able to defend and promote their interests.
In a recent report, INFID said Indonesian workers have not been given the opportunity to fully exercise their rights.
It also underlined that the wage levels in Indonesia, averaging 23 U.S. cents per hour, are among the lowest in the world.
INFID warned of the impact of greater business competition might have on the environment, including the possibility of massive exploitation of natural resources at the expense of ecological resources.
Asmara said that as the West tightens its environmental regulations, some of their industries might try to relocate in developing countries where the regulations are lax.
"There are indications that developing countries deliberately set low standards for environmental protection in order to attract direct capital investment and to entice multinational corporations," according to the INFID report.
Indonesia should not be prepared to face trade liberalization measures with an absence of coordination between related government agencies in the handling of environmental matters, it added.
INFID urged APEC members to broaden their environmental consultations and coordination.
"We cannot deny that free trade will have a positive impact, as has been repeated by President Soeharto and other government officials," Asmara said. "But people have the right to know the negative impacts as well," Asmara said.
INFID has invited a number of APEC delegates for a meeting during their stay in Jakarta to convey its view on APEC and the free trade proposal, he said.
Some have responded positively, some have rejected it and others, like the United States, have not responded, he added.
INFID is also organizing a meeting with NGOs from Japan, the Philippines, Thailand, Australia, the U.S., South Korea and Mexico. Together they will issue a statement about APEC on Nov.12.
"APEC is not the business of government and businessmen only, it's also the business of the people," Asmara said.