KADIN expected to play active role in ASEAN integration drive
Tony Hotland, The Jakarta Post, Jakarta
Minister of Foreign Affairs Hassan Wirayuda wants input from the Indonesian Chamber of Commerce and Industry (KADIN) on the development of policy on the planned integration of Southeast Asian economies, as stipulated in the Bali Concord II.
"The full integration of ASEAN is a challenge faced by both the government and businesspeople. This is where the businesspeople should answer the call to provide input because in the end it will be them running the field," said Hassan after a speech during a one-day meeting of the foreign division of KADIN on Tuesday.
KADIN was holding its last working meeting before setting up a new directorship on Feb. 20. The meeting was to provide a frame of reference for Indonesia's trade and industry relations with foreign countries, in anticipation of the implementation of the Bali Concord II.
"KADIN must play a more active role in providing recommendations to the legislature, remembering that Indonesia will be much occupied by the general election this year," he said.
Hassan said an assessment of the action plans for the further implementation of the economic integration would be conducted some time in November 2004.
The Bali Concord II, which is also known as the Declaration of the ASEAN Concord, was signed in October last year in Bali by the leaders of the 10 ASEAN members.
One of the 10 key points in the agreement is that the ASEAN Community will be established on the basis of political, security cooperation, economic and sociocultural cooperation among its members.
Under the economic cooperation plan, ASEAN economies are expected to be integrated in a European-style single market by 2020, with an accelerated schedule in some key economic sectors.
Hassan added that economic cooperation offered the important prospect of creating a single market of over 500 million people.
KADIN head Aburizal Bakrie asserted that Indonesia should take advantage of globalization because the country's economy was still moving at a snail's pace.
He said full economic integration for ASEAN would benefit Indonesia's exports.
"Our export portion is only 0.9 percent of total world exports, putting us behind Malaysia and Thailand. ASEAN economic cooperation will definitely boost our exports," he said.
Rizal, who is also a presidential candidate, is confident about Indonesia's ability to compete with China and Thailand, saying Indonesia is a very open market.
Economist Pande Radja Silalahi, who was among the speakers at the meeting, said that in order to achieve such economic accomplishments, Indonesia must first "cleanse itself".
"There are three concerns that investors have about Indonesia -- inconsistent policies, law and taxation.
"Besides that, the alarming level of corruption and our bureaucracy put us at a disadvantage. If we can tidy these things up, I believe we can compete with Singapore," he affirmed.