RI committed 'to removing trade barriers'

JAKARTA (JP): Indonesia is fully committed to removing tariff and non-tariff barriers, and implementing agreements to further the country's integration into the global trading network, Minister of Finance Mar'ie Muhammad said yesterday.

"We are because we realize that when we open ourselves up to the global economy, the long term benefits from increased participation in the world economy will be immense," Mar'ie told a Pacific Rim Forum in Hong Kong.

A copy of Mar'ie's speech was released here yesterday by the finance ministry's public relations section.

Mar'ie said Indonesia regretted that some countries had introduced barriers that could impede the success already achieved so far.

He also regretted that little progress had been made to establish a similar constructive framework in the trade of services.

"We all know that as the pace of economic globalization accelerates, trade in services, including financial services, is becoming increasingly important," he said.

Mar'ie said Indonesia had gained from reducing restrictions on goods trading and could gain more by reducing barriers to the trade of services.

He said that Indonesia had a very open financial sector and was ready to participate in negotiations on the liberalization of trade in services and would fairly and objectively evaluate proposals for removing trade barriers.

On the Asian economy, Mar'ie said that as global competition was more intense, the continued success of Asian economies would depend largely on how quickly and well they met several challenges, he said.

The Indonesian finance minister said the challenges to the Asian economy were as follows:

The first challenge is for East Asian economies to quickly convert their manufacturing and services sectors into knowledge- intensive industries and to generate higher incomes for their citizens.

The second is to develop a framework that will allow them to move from export-led growth based on labor and raw material intensive exports to exports that will increasingly consist of higher value-added products.

The third is to maintain their record of macroeconomic policy, while creating a more just society.

The fourth is to quickly and thoroughly develop and adapt their education systems to meet the coming global challenges.

The fifth is to encourage the development of a democratic culture; create a policy framework that allows growth while protecting the environment; establishing a code of good governance; and promoting the active participation of all citizens in the development process.

The sixth challenge is to alleviate poverty.

The seventh challenge is to create a forum to help resolve potential conflict in the region while continuing to recognize the diversity that is the region's strength. (bnt)