Kadin wants postponement of RI-Australia FTA`s signing
Jakarta (ANTARA News) - The Indonesian Chamber of Commerce and Industry (Kadin) has asked the government to postpone the signing of a free trade agreement (FTA) with Australia until domestic industries were in a stronger bargaining position.
"We have called on the government not to sign a FTA with Australia before we have finished our homework (strengthening the bargaining power of industries)," Kadin chief MS Hidayat said at the launching of the 2009-2014 Road Map for Indonesian Economic Development here on Thursday.
He said the country`s industries could be strengthened by implementing the road map which was formulated by Kadin in the past six months.
According to the road map Kadin targets an average 6.3 percent of economic growth in the next five years.
"If the government follows our concept Indonesia will be successful in the economic field, business will grow, export will also grow and domestic trade will be strong. The road map also offers development priorities for certain industries," he said.
Kadin`s deputy chief for international affairs, John A Prasetio, said Indonesia had so far tended to be reactive in dealing with FTAs.
"Studies and strategies should have been made before embarking on FTA negotiations. The advantages and disadvantages must be made clear. No serious study has so far been made," he said.
John said an FTA could be positive for Indonesia but there must be a special strategy with regard to negotiations to assure gains.
He said "for example we have to ask for a market share for manggoes from Probolinggo or others during negotiations. Things like this must be clear."
The head of Kadin`s Institute of Economic Development, Research and Study, Faisal Basri, said the government had to make an active industrial policy and must not let it totally to free market system.
"Businessmen in Indonesia have great potentials but they cannot just be left to develop on their own or without government support," he said.
He said the government also had to push for distribution of economic growth so that "not only businessmen in Jakarta that would grow. There must be a clear stance on this."
Kadin`s economic team chairman Pande Radja Silalahi said future competition among countries would be determined by government policies. "Without the government taking sides to strengthen local companies there will be problems later," he said.(*)
"We have called on the government not to sign a FTA with Australia before we have finished our homework (strengthening the bargaining power of industries)," Kadin chief MS Hidayat said at the launching of the 2009-2014 Road Map for Indonesian Economic Development here on Thursday.
He said the country`s industries could be strengthened by implementing the road map which was formulated by Kadin in the past six months.
According to the road map Kadin targets an average 6.3 percent of economic growth in the next five years.
"If the government follows our concept Indonesia will be successful in the economic field, business will grow, export will also grow and domestic trade will be strong. The road map also offers development priorities for certain industries," he said.
Kadin`s deputy chief for international affairs, John A Prasetio, said Indonesia had so far tended to be reactive in dealing with FTAs.
"Studies and strategies should have been made before embarking on FTA negotiations. The advantages and disadvantages must be made clear. No serious study has so far been made," he said.
John said an FTA could be positive for Indonesia but there must be a special strategy with regard to negotiations to assure gains.
He said "for example we have to ask for a market share for manggoes from Probolinggo or others during negotiations. Things like this must be clear."
The head of Kadin`s Institute of Economic Development, Research and Study, Faisal Basri, said the government had to make an active industrial policy and must not let it totally to free market system.
"Businessmen in Indonesia have great potentials but they cannot just be left to develop on their own or without government support," he said.
He said the government also had to push for distribution of economic growth so that "not only businessmen in Jakarta that would grow. There must be a clear stance on this."
Kadin`s economic team chairman Pande Radja Silalahi said future competition among countries would be determined by government policies. "Without the government taking sides to strengthen local companies there will be problems later," he said.(*)