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