Riau 'entitled' to direct trade with Malaysia, S'pore
Riau 'entitled' to direct trade with Malaysia, S'pore
JAKARTA (JP): Riau's new status will enable the province to
trade directly with Malaysia and Singapore, a researcher said on
Tuesday.
Alfitra Salam of the National Institute of Science in
Pekanbaru, the capital of Riau, told Antara the new Law on
Regional Autonomy, endorsed by the House of Representatives last
week, allows a province to form relationships with foreign
countries without central government approval.
Since July 1997, Riau and Malaysia have held trade discussions
but have been unable to form agreements due to Jakarta's
objection.
"People living in Sumatra coastal areas were wealthy during
the ancient regime thanks to their direct business with foreign
partners. The situation changed after Malaysia and Indonesia
gained independence, because so far, no joint border treaty
covers Riau and Malaysia," Alfitra said.
Indonesia and Malaysia signed a joint border treaty only for
trade in Serawak in Malaysia and West and East Kalimantan.
Another treaty is expected to cover Riau waters and Tanah
Semenanjung in Malaysia.
Alfitra said that in comparison to domestic business revenue,
foreign trade would have benefited locals from Riau considerably,
not only because of the trading proximity, but because Malaysian
partners offered higher prices.
Alfitra said the treaty should not restrict people's movement,
but control the traffic of goods in order to help people improve
their standard of living.
"In the past, Riau people used to do business in Malaysia and
Singapore, selling rubber, coconuts, vegetables, fish, shrimps or
pandanus mats in exchange for staple food and essentials.
"They did not need passports then. Now many of them have to do
their old business secretly because they do not hold passports."
Alfitra said direct trade between Riau and Malaysia and
Singapore was necessary for Indonesia to prepare itself for the
Asia Pacific Free Trade Area (AFTA). AFTA officially begins in
2003.
Separately, the province's Deputy Governor in charge of
Administrative Affairs and People's Welfare, Rustam Abrus, said
despite the fact there had been no joint border treaty signed
with Malaysia, Riau had listed 14 districts along the border as
free trade traffic lanes.
They include Kubu, Bangko, Rupat, Bantan, Rangsang, Kuala
Kampar, Senayang, Jemaja, Bunguran Barat, Bunguran Timur,
Karimun, Moro, Bintan and Belakang Padang districts.
"We hope the government approves our direct foreign trade
plan, because we want to help people improve their standard of
living," Rustam said. (amd)