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)