RI faces harsh treatment from developed nations
JAKARTA (JP): Indonesia gets special and preferential treatment under the General Agreement on Tariffs and Trade (GATT) but faces harsh treatment from industrialized nations, Minister of Trade Satrio Budiardjo Joedono said here yesterday.
Opening a three-day workshop on trade, Joedono said Indonesia could get special and differential treatment under GATT because it is categorized a developing nation.
"However, we have to face harsh treatment from developed nations because of this. They expect more from us," Joedono said.
Developed nations, especially European countries and Australia, have been continuously accusing Indonesia of providing subsidies for a number of products and engaging in dumping practices.
Indonesian products which usually face anti-dumping regulation are canned tuna, clear float glass, exercise books, processed glass, photocopy papers, lead acid batteries, plastic bags, sorbitol, desiccated coconut, photo albums, bicycles, cotton fabrics, denim, footwear, glutamic acid, polyester fabrics and glassware.
Last July, Mexico charged Indonesia of subsidizing its plywood production, and since then it has imposed countervailing duties of up to 33 percent on Indonesian plywood.
Joedono noted that although Indonesia faces many charges both on dumping and subsidies, it is committed to fulfilling all GATT principles as they will give the country more benefits.
The minister noted that, while developed nations have to lower their tariffs by 33.3 percent from their current levels, Indonesia is allowed to set tariffs at a maximum of 40 percent.
Furthermore, 505 industrial goods from Indonesia are excluded from the 40-percent ceiling, he said.
He explained that the excluded products are the ones that are very sensitive to price fluctuations on the world market, such as chemical products, plastics, rubber, farming tools, iron, steel, ammunition and weaponry as well as automotive vehicles.
Directorate
Joedono said that in order to foster trade in accordance with GATT, the Ministry of Trade will launch a special directorate, which will be called the Directorate of the World Trade Organization. The Directorate will be established early next year when the Uruguay Round comes into effect.
Joedono promised that his ministry will continue to reduce bureaucratic procedures for exports and imports to improve efficiency.
He also said that his ministry will give special attention to local industrial products so that they are able to compete on the world market, because the industry will remain the prime mover of Indonesia's economic growth for the second long-term (25-year) development plan period.
Coordinating Minister for Economy and Finance Saleh Afiff told yesterday's meeting that the manufacturing industry will contribute 35 percent to the gross domestic products within the next 25 years, as compared to the current 20 percent.
"If this goal has been achieved, Indonesia can be categorized as an industrialized country," Saleh said.
Saleh noted that the industry will continue to grow by no less than 10 percent per annum if it is supported by a considerable growth of the agriculture sector, which is expected to provide raw materials.
As the Indonesian population is expected to reach 260 million people in 2020, Saleh predicted that agriculture will remain the bumper of job opportunities. No less than 35 percent of all job seekers will remain in the agriculture sector.
Saleh noted that the government intervention in the agriculture sector, therefore, is still needed in the form of infrastructure development, research and technical training.(rid)