House members wary of APEC moving too fast

House members wary of APEC moving too fast

By Pandaya

JAKARTA (JP): A number of Indonesian legislators are warning
the government against pushing the idea of a free trade area in
the Asia Pacific area, pointing out that the nation needs to do
some housekeeping first. The idea is being considered by the
Asia-Pacific Economic Cooperation (APEC) forum.

Interviewed separately, three members of the House of
Representatives (DPR) suggested that Indonesia, which currently
chairs the 18-member forum, maintain APEC as a loose consultative
forum.

They suggest Indonesia strengthen its economy and supporting
institutions instead of hastily setting a target date for an APEC
free trade area.

The warning came on the eve of the annual APEC ministerial
meeting which will review proposals for trade liberalization in
the Asia Pacific and the possibility of establishing a free trade
area.

The APEC Eminent Persons Group has even suggested a deadline
of 2020 if not earlier.

While they welcome Indonesia's participation in the 18-member
APEC, legislators Aisyah Aminy, Tadjuddin Noer Said and Bomer
Pasaribu said that until the economy was solid enough to compete
in the world market, Indonesia should oppose the proposal.

"Indonesia should tread carefully because industrial countries
like the United States has a strong vested interest in APEC,"
Aisyah said. "Washington may use the forum to strengthen its
bargaining position against the European Union."

Aisyah, who chairs the DPR Commission I on foreign affairs,
said Indonesia should not be spellbound by industrialized
countries' rhetorics on the need for regional free trade.

"If the regional free trade deadline is set too soon,
Indonesia's economy may collapse," said the legislator from the
Moslem-based United Development Party (PPP).

"In a way, Indonesia's participation in APEC would encourage
local businesses to improve their efficiency and competitiveness
in the world market instead of just counting on the privileges
and protection from the government," she added.

APEC groups the United States, Canada, Mexico, Chile, Japan,
South Korea, China, Hong Kong, Chinese Taipei, Brunei, Indonesia,
Malaysia, the Philippines, Singapore, Thailand, Papua New Guinea,
Australia and New Zealand.

Together, the 18 countries account for about half of the
world's gross domestic products. The member countries range from
budding economies to industrial powerhouses and setting a time
frame for full-swing trade liberalization is a difficult issue.

U.S. and Australian officials, who spearheaded APEC, have
predicted that free trade would unite the Asia-Pacific region
before the 2020 target date.

Any commitment on free trade is likely to come from the APEC
Economic Leaders Meeting scheduled in Bogor next Tuesday and not
from the ministerial meeting which will open tomorrow in Jakarta.

American President Bill Clinton hosted the first APEC leaders
meeting in Seattle last November. Washington believes that
consensus is now building for 2020 as the optimum date for
achieving regional free trade.

Australia, which first floated the idea of APEC in 1989, is
one of the most enthusiastic supporters of the idea to strike a
deadline at the Bogor meeting.

Australian Prime Minister Paul Keating will push hard for an
ambitious free trade deal at the summit, believing that such a
pact can trigger a whole new round of global trade
liberalization. He has traveled far and lobbied hard over recent
months for a deal to open up trade by a specific date.

Tadjuddin, a House member from the ruling political
organization Golkar, questioned whether Indonesian industries
would be able to compete in the international market if the
government maintained its inward-looking economic policies.

"The hikes in electricity rates, soaring fuel prices,
expensive transport fees and rife illegal levies have to be dealt
with if the industry is expected to be competitive," he said.

He pointed out that the ongoing disclosure of scandalous
export document scams to obtain bank credits involving major
companies showed inefficiencies in Indonesia's exports.

"I suggest that Indonesia see to it that APEC remain a
consultative forum until the economy reaches a higher level of
development," he said.

Employment

For those concerned with employment, like legislator Bomer
Pasaribu, APEC is expected to bring about ample employment
opportunities for Indonesia.

Bomer envisions that as APEC is being institutionalized
skilled foreign investors will stream to Indonesia, creating new
jobs and enabling transfer of technology through education and
training programs.

Indonesian Minister of Foreign Affairs Ali Alatas has said
that APEC has been undergoing an institutionalization process in
small stages. Indonesia's task, Alatas said, is to see to it that
the process will not go too fast.

"When trade is liberalized, Indonesia will be flooded with
professional workers from other countries. And we will have to
have legislations on how to make the best use of them," said
Bomer, who is also secretary general of the All Indonesian Labor
Union (SPSI), the only union the government recognizes.

He maintains that human resources development must obtain top
priority in the APEC forum. All foreign ventures should be
required to conduct apprenticeship programs for local workers, he
said.

Under the existing labor laws, expatriates may be employed
only if the job opening cannot be filled by locals.