RI faces harsh treatment from developed nations

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)