Wed, 14 Dec 1994

No turning back on free trade

JAKARTA (JP): Indonesia must cautiously move with the global trend towards free trade but it must not waver because that is the direction the world is heading, President Soeharto said yesterday.

Soeharto was placating critics who say that he was too quick in pushing for the free trade declaration at the Asia-Pacific Economic Cooperation (APEC) forum he hosted in Bogor last month.

"It is normal that some people question whether or not we are capable and ready to tap the opportunities (of free trade)," he said when receiving participants of a seminar organized by the Institute of National Resilience (Lemhannas).

"The question stems from the cautious attitude which we must always retain," he asserted. "But we have to realize that whether we're ready or not, or capable, the free trade system has been chosen by the world."

"Our cautiousness must not degenerate into doubt or apprehension. Our cautiousness must be turned into a commitment and resolution to prepare ourselves to face the challenge and take advantage of the opportunities offered."

Soeharto has been widely accredited for pushing APEC's 18 member economies -- including the United States and Japan -- to commit to a regional free trade area by the year 2020 in the Bogor joint declaration. It sets a time frame of 2010 for developed economies and 2020 for developing ones.

At home, however, some politicians and scholars have questioned the decision. They fear that Indonesia would be flooded by imports which could cost jobs and even slow national development. They believe the free trade concept could also undermine Indonesia's sovereignty.

Soeharto responded to these concerns by stressing that Indonesia still has time to prepare itself before free trade is implemented.

"In areas where we're not ready, let's get prepared. Factors which are not yet right, let's make them right. We should also put our regulations and procedures in order."

"Making us ready and capable will be a joint effort," he added.

He stressed that Indonesia must develop its human resources in particular.

He added however that this is nothing new. "We have been developing them, we are developing them and we will continue to prepare our human resources in every field."

The Lemhannas regular course is organized for military and civilian figures who are in leadership position. The participants will also be locked in a seminar to explore the Pancasila culture, named after the state ideology.

Soeharto said that the principles of Pancasila have been translated into the doctrines of National Resilience and the Archipelago State in order to turn the abstract into practical points.

These two doctrines will help Indonesia remain united, particularly against disintegrating factors, and deal with future complex challenges.

The two doctrines can be modified to accommodate any changes in society and the world.

This, the President added, is why Pancasila is considered an open ideology. While its principles must remain, its doctrines can change with the times. (emb)