Soeharto wants APEC to remain loose body

Soeharto wants APEC to remain loose body

JAKARTA (JP): President Soeharto said yesterday that, while
Indonesia supports trade liberalization in the Asia-Pacific
region, it does not want the formation of a formal bloc.

Soeharto made the statement during a meeting with visiting
Malaysian Minister of International Trade and Industry Rafidah
Aziz at the Merdeka Palace here.

"We want to know President Soeharto's opinion about this
matter. And it is clear that he supports trade liberalization in
the region but does not propose to make it into a formal free
trade area, as wanted by a number of parties," Rafidah said after
meeting with Soeharto.

Rafidah referred to some developed members of the Asia Pacific
Economic Cooperation (APEC) forum, including Australia and the
United States, which want to institutionalize the forum. The
proposal that APEC be institutionalized has been rejected
outright by developing members, especially Malaysia, she added.

"I'm happy to see Bapak President's clear view this time. And
we support it," Rafidah said, adding that developed economies
should start to liberalize trade and investment in their
countries earlier than the developing members do.

At their second summit in Bogor, West Java, last November,
APEC leaders agreed to liberalize trade and investment in the
region. The deadline for full liberalization is 2010 for the
developed economies and 2020 for the developing economies.

"What we want to see is that efforts in the Asia-Pacific
region to liberalize trade by reducing tariffs. And those figures
(of years) only serve as targets, which would comply with the
capabilities of each member," Rafidah said.

The third APEC summit, scheduled to take place in Osaka on
Nov. 19, is expected to provide a blueprint for the
implementation of the Bogor declaration on trade and investment
liberalization in the region.

Asked if Malaysian Prime Minister Mahathir Mohamad will attend
the Osaka summit, Rafidah said the prime minister had not yet
decided. "But I believe that he will attend it. Insya Allah (If
God is willing)," she added.

Rafidah returned to Kuala Lumpur after her meeting with
Soeharto yesterday. The minister had been here on a three-day
visit to promote bilateral trade and investment. The Indonesian
visit was the third leg of a Southeast Asian tour by Radifah and
followed a visit to Thailand and the Philippines. (rid)