Turning to the domestic market

Turning to the domestic market

In 1997 economic observers used to say that our big companies,
enjoying protection and facilities from the government, were good
only in the domestic market.

When the economic crisis made Indonesia ask the International
Monetary Fund (IMF) for help, it forced Indonesia to open its
market to foreign products, a situation that still continues with
some people believing Indonesia is far more liberal than the WTO
agreement requires.

In the aftermath of the Bali blast, which killed or wounded
many foreigners, Indonesia, still in the grip of the economic
crisis, has received mounting pressure from Western powers,
particularly the US, who see Indonesia as reluctant to join a
major alliance against international terrorism. They have cut
their import orders from Indonesia on the grounds of security.
Even the United Nations Security Council issued its Resolution
No. 1438 about the Bali tragedy being a threat to international
peace and security.

The Indonesian Textile Association has predicted that, as a
result, exports in 2003 will be down by at least 20 percent.
Predictably, other sectors will fare similarly.

If this phenomenon continues, there will be massive layoffs
and disturbances to security will rise. The whole thing is really
a vicious circle.

Given this gloomy outlook, the best way is to turn to the
domestic market. The industry and trade ministry must team up
with the directorate general of customs and excise to keep
illegal trading practices away from the domestic market, the
choice of which is a matter of life and death for our business
circles.

-- Bisnis Indonesia, Jakarta