Minister warns about trade liberalization

JAKARTA (JP): State Minister of Investment Sanyoto Sastrowardoyo warned yesterday that Indonesia would become a victim of global trade liberalization if it failed to prepare itself.

Speaking before 200 experts and cadres of the ruling Golkar in Ujungpandang yesterday, he said that trade liberalization would open every country's market to every country's products and investment.

"As a result, competition will be increasingly tougher. And only fully prepared countries will benefit. Those that are not prepared will fall victim to the liberalization," he was quoted by Antara as saying.

He said Indonesia should improve its competitiveness on the world market in order to win the competition.

Sanyoto said that developing small-scale businesses and cooperatives all over the country was a key factor to improving the country's competitive edge on the world market.

But he said that a lack of investment funds at home stood in the way of developing its economy. During the current sixth five- year development plan, ending March 31, 1999, the country needed a total investment of Rp 815 trillion (US$339.6 billion).

Of the total investment, some $108 billion had been realized during the first four years of the sixth five-year development program.

He underlined the importance of giving priority to national interest in dealing with the international agreement on trade liberalization.

During the meeting, which was also attended by Minister of Cooperatives and Small enterprises, Subiakto Tjakrawerdaya; deputy chairman of Golkar, Warno Hardjo; secretary-general of Golkar, Ary Mardjono; and Siti Hardiyanti Rukmana, the cadres and experts discussed Golkar's ideas for the 1998 state guidelines. (bnt)