India, China, two reasons for economic integration: Susilo

India, China, two reasons for economic integration: Susilo

Meidyatama Suryodiningrat, The Jakarta Post, Vientiane

President Susilo Bambang Yudhoyono arrived in the Laotian capital
on Sunday with a strong message about Indonesia's commitment to
free trade, open investment and a pledge to increase the
efficiency of economic transactions.

Susilo, who is set to attend his inaugural ASEAN Leaders
Summit on Monday, stressed the importance of greater economic
integration and consistent efforts to boost the economic
attractiveness of the region. Following this path, the 10 ASEAN
member states would end up wielding greater international
diplomatic power, he said.

Speaking before some 300 executives at the ASEAN Business and
Investment Summit, the President's remarks showed he was well-
aware of the repeated complaints by many businesspeople about
Indonesia.

"Governments, and I am speaking for my own country as well,
need to increase the efficiency of all economic transactions in
the region," he said.

"A country where property rights are absent, trade policies
are highly restrictive and corruption is rampant, is unlikely to
enjoy rapid economic growth."

He cited two simple reasons for the need for greater economic
integration: India and China. Calling China "a magnet for foreign
investors" and "unbeatable as a manufacturing outlet," Susilo
said he remained confident Southeast Asia could still stake a
claim in the shrinking investment pie.

"Businesses seek to reduce risk, and investing too much in one
location increases those risks. We have to take advantage of
their strategy of diversification," he said.

Despite being new on the job, Susilo showed no signs of
awkwardness in his first ASEAN meeting as president. Warmly
greeting people, often with a two-handed handshake, he played his
part with little hesitation.

In the evening he had a whirlwind of bilateral meetings with
leaders from China, Cambodia, India, Laos and Thailand, before
heading for an informal dinner hosted by Laotian Prime Minister
Bounnhang Vorachith.

Heading a delegation, which includes Coordinating Minister for
the Economy Aburizal Bakrie, Coordinating Minister for Political,
legal and Security Affairs Widodo AS, Foreign Minister Hassan
Wirayuda, Minister of Trade Mari Pangestu and State Secretary
Yusril Ihza Mahendra, the president is one of 16 leaders -- one
king, three presidents and 12 prime ministers -- to attend what
will be the biggest Asian gathering of the year.

Not only will the leaders of all the ASEAN member states be
attendance, but summit meetings will also be held with leaders
from China, Japan, South Korea, India, Australia and New Zealand.

The Laotian government has pulled all the stops to make the
summit an event to remember, seemingly at the expense of the
ordinary Laotian citizen.

A quaint and small city of about 600,000 under normal
circumstances, Vientiane streets were cleared of all
"unnecessary" traffic. Taxis and other public transport such as
Thai-modeled tuk-tuk were barred from streets. Roads had been
beautified and residents were encouraged to abstain from any
unnecessary traveling during the proceedings.

Laotian women seemed to heed the encouragement of local
officials to only go out in their traditional sarongs, sinh, and
a virtual curfew began 10 p.m., resulting in a quiet, atmosphere-
less city.

The security, which some might call excessive sterilization,
was aimed at neutralizing the potential threats from armed
guerrillas known to be active in remote regions in the country.

Editorial -- Page 6
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