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)