Minister warns about trade liberalization

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)