Subregional ties help boost ASEAN economy: Hartarto

Subregional ties help boost ASEAN economy: Hartarto

JAKARTA (JP): The development of subregional growth centers
among members of the Association of Southeast Asian Nations
(ASEAN) help boost the region's economic growth, a senior
minister said.

Coordinating Minister for Production and Distribution
Hartarto said yesterday that the establishment of subregional
growth centers among ASEAN countries has led to the promotion of
greater economic activity in the respective subregions.

"The ASEAN governments are, therefore, determined to continue
cooperating in the development of more subregional growth centers
in the future," he told members of the Mercantile Club during a
business luncheon.

ASEAN members have developed three subregional growth centers
in the last five years to facilitate business activities in their
neighboring areas.

The first is called the Indonesia-Malaysia-Singapore Growth
Triangle, linking Riau province -- including Batam, Singapore and
Johor state in Malaysia -- into an integrated economic center.
The second is the Indonesia-Malaysia-Thailand Growth Triangle
connecting North and West Sumatra in Indonesia, southern
provinces in Thailand and western states in Malaysia.

The Brunei Darussalam-Indonesia-Malaysia-Philippines East
ASEAN Growth Area, the latest subregional cooperation developed
by ASEAN members, encircles provinces of Central and South
Kalimantan; Central, South and Southeast Sulawesi; Sarawak of
Malaysia; and the southern provinces of the Philippines and
Brunei.

Hartarto said that the development of other subregional growth
centers is now under preparation. As a result, more nearby areas
in ASEAN could benefit from the advantages of other members,
either in the form of capital, land or labor.

He said that under such subregional cooperation, Malaysia, for
example, could benefit from the availability of agricultural
lands in North and West Sumatra to develop plantations. Singapore
would take advantage of Riau's lands for its tourism companies.
Indonesia, on the other side, could benefit from Singapore's
financial strength and know-how.

Largest market

Hartarto said that ASEAN -- which at present groups Brunei,
Indonesia, Malaysia, the Philippines, Singapore, Thailand and new
member Vietnam -- is one of the regions experiencing rapid
economic development.

The planned entry of Cambodia, Laos and Myanmar into the
association over the next few years will turn the region into one
of the largest markets in the world.

"The region, with a population around 500 million, will become
a promising market not only for ASEAN-based products, but also
those from other countries," he said.

He said that at the fifth ASEAN Summit in Bangkok last year,
the association's member countries agreed to accelerate the
schedules of trade liberalization in the region, from 15 years to
10 years.

"With this new schedule, the ASEAN Free Trade Area (AFTA) will
be achieved by the year 2003, instead of 2008," he said. "In
addition, the ASEAN leaders also agreed to broaden the coverage
of the AFTA products."

Hartarto said that the Indonesian government is committed to
further improving economic efficiency in the country to improve
the competitiveness of domestic products.

"The Indonesian government is opening up to reforms and
corrections because in reality, a strong nation is one willing to
constantly reform itself," he said.

Hartarto noted that a series of deregulatory packages,
including those on the lowering of tax rates, reduction of
tariffs and non-tariff barriers and investment liberalization had
been introduced to improve efficiency in the country's business
activities.

With such efforts, Indonesia is confident that it will be able
to compete with other countries during the era of trade
liberalization in the next five years. At the same time, it will
also be able to sustain its rapid economic growth. (hen)