Protectionist measures no longer relevant
JAKARTA (JP): Protectionist measures are no longer relevant since the conclusion of the Uruguay Round of negotiations on the General Agreement on Tariffs and Trade (GATT), the planned trade liberalization among APEC members, State Minister of Investment Sanyoto Sastrowardoyo said yesterday.
"The main objective of GATT is to build a free-trade mechanism so that GATT signatories will receive maximum benefits," Sanyoto said in his speech at the graduation ceremony of the IPMI Institute Management.
The GATT, which will be implemented next month, requires freer trade among its signatories, while the Asia Pacific Economic Cooperation (APEC) forum has agreed to liberalize trade and investment among its members by 2020.
Sanyoto said the free trade principles will create comparative advantages among countries which will eventually lead to international trade cooperation with mutual benefits.
He, however, said the flow of goods between nations is not as smooth as expected due to protectionist measures.
"Tariff or non-tariff barriers are built by many countries in order to prevent or reduce the inflow of goods from other countries. A developing country such as Indonesia is always disadvantaged due to pressure from developed countries through various political maneuvers," he said.
According to Sanyoto, in preparing itself to enter the next century, Indonesia should accelerate the speed of development in areas where the country has a competitive advantage for international trade, and create new measures to keep the investment climate competitive vis a vis with neighboring nations in the Asia-Pacific region.
Sanyoto told the 35 graduates yesterday that they should immediately improve their business skills after undertaking a post-graduate program.
IPMI is owned by the YPMI foundation chaired by Bustanil Arifin, a former chairman of the National Logistic Agency.
More than 10 companies and foundations, including American Express, British Petroleum, Citibank, Ericsson, The Hong Kong Bank, PT Surveyor Indonesia and the Bakrie Group, traditionally provide on average a US$1,000 award for students who have an excellent rank in specific courses.(icn)