Indonesia must get the most out of GATT
Indonesia must get the most out of GATT
JAKARTA (JP): Coordinating Minister of Trade and Industry Hartarto said last night that Indonesia must implement all the provisions in the new General Agreement on Tariffs and Trade (GATT) in order to reap as many benefits as possible from the agreement.
Hartarto noted that Indonesia could benefit greatly from the new global trade pact under the World Trade Organization (WTO) due to the opening of markets in other countries.
"The real benefit, though, will depend on how well Indonesia taps the new opportunities in the international market," Hartarto told 100 senior executives of more than 60 international companies attending the third roundtable with Indonesian government leaders.
The two-day roundtable, which will be opened by Vice President Try Sutrisno today, is organized by the Economist Conference in association with Business Advisory Strategies and PT Aspecindo Kreasi.
The first government roundtable meeting was held in 1968 and the second in 1993.
He said the private sector must be more aggressive when seizing opportunities coming from GATT, which was implemented by the WTO early this year.
"The government commits itself to maintaining political and economic stability and continuing deregulation programs," Hartarto said.
In addition to the WTO, Indonesia is undertaking a market- driven economy through regional trade liberalization in the Asia Pacific Economic Cooperation (APEC) forum and the Association of Southeast Asian Nations (ASEAN).
At their meeting in Bogor last November, APEC leaders agreed to liberalize trade and investment in the region by 2010 for developed members, and by 2020 for developing members.
ASEAN has also agreed to accelerate the implementation of the ASEAN Free Trade Area (AFTA) from 15 years to 10 years, or by the year 2003.
In 2003, tariffs for industrial products will be brought to between zero and five percent, and non-tariffs barriers will be eliminated. It is expected that this arrangement will increase intra-ASEAN trade. Preliminary trade statistics for 1994 already indicate a 1.6 percent increase in intra-ASEAN trade.
Hartarto said the seven years grace period between the two trade agreement's schedules is sufficient time for the ASEAN countries to prepare themselves to face the liberalization pursued by APEC.
"Scope and modalities for free trade in APEC will be formulated in the APEC meeting in Japan this year. Indonesia will ensure that its national needs will be cared for," Hartarto told last night's gathering.
Eight ministers are scheduled to give presentations at the meeting. They are Minister of Tourism, Post and Telecommunications Joop Ave, Minister of Trade Satrio B. Joedono, Minister of Manpower Abdul Latief, Minister of Public Works Radinal Moochtar, Minister of Industry Tunky Ariwibowo, Minister of Mines and Energy I.B. Sudjana and Hartarto. (rid)