Local firms not ready for 'global rivalry'

Local firms not ready for 'global rivalry'

JAKARTA (JP): Most domestic companies are not yet ready to
face globalization of trade, unlike their competitors in
neighboring countries such as Singapore, Malaysia, the
Philippines and Thailand, an executive said here Saturday.

Bakrie Group president Tanri Abeng said in a discussion on his
new book that most Indonesian companies were not ready for free
trade because they were still oriented to the domestic market,
which is protected by the government.

Companies currently exporting resource-based products were
also not ready for tighter competition in the coming years
because they tended to export their products in the form of
commodities which were not processed using high technology, he
said.

Tanri suggested that such exporting companies should process
their commodities further with high technology to increase their
added value.

"Against other countries, we are not competitive yet in human
resource development and technology," he said.

He said the fact that no Indonesian companies operated in
other countries -- except a few financial firms -- indicated that
Indonesian firms could not compete with similar corporations
overseas.

He also suggested that government institutions and companies
improve cooperation and professionalism in a bid to increase the
competitiveness of Indonesian products overseas.

Tanri plans to launch his book, Dari Meja Tanri Abeng (From
the Desk of Tanri Abeng), on June 21. The book discusses Tanri's
ideas and perspectives on management. (13)