| By Andi Adussalam |
Jakarta, May 8 (ANTARA) - The influx of cheaper Chinese goods in Indonesia following the implementation of the ASEAN-China Free Trade Agreement (ACFTA) can be a signal that the country is not yet well prepared to face free trade. In a borderless regional grouping like the ASEAN Economic Community (AEC) which the Association of Southeast Asian Nations is going to establish in 2015, the flow of goods will no longer be arranged with a tariff reduction. Goods, investments and other trade commodities will flow freely without any barriers. The consequence is that countries which are not yet efficient in the production process will suffer from the glut of imported goods on the one hand, and will on the other face difficulties to penetrate overseas market within the region. Moreover, the levels of economic progress, gross domestic product and per capita income of countries within ASEAN still vary. The more advanced ones like Singapore will definitely take advantage of such an economic community. Can Indonesia plunge itself with enough strength into the borderless community within the region? ASEAN leaders have declared 2015 as the beginning year of the ASEAN economic community integration with the flows of goods, investment and migrant workers are to be integrated like in one country. "The AEC will turn ASEAN into a status more than that of the ASEAN Free Trade Area (AFTA) which arranges only tariff reduction for the imports, exports and services. This requires a strong economic structure of the member states," Adhitya said. As the ASEAN chair, Indonesia should have a strong commitment if it wants to integrate the economies of ASEAN member states. Yet, it would not be able to do it optimally if its own economic conditions at home are still chaotic. "The government has the strong and exceptional ambition towards the creation of the AEC in 2015, but the progress of its own economy is still far from that of Singapore and Malaysia," he said. After all, the Indonesian government is yet to have clear policies and regulations such as business competition and ant-dumping to protect its business players. Thus, it will still face many challenges in the implementation of AEC in 2015. "If Indonesia is able to improve its economic infrastructure and realize the ASEAN economic integration, the AEC would emerge as an exceptional economic power in the world," Adhitya who is also a lecturer on monetary economy in the Jember University, said. However, he said, the commitment of ASEAN members to implement an integrated economic community is not yet maximal. Some members are still reluctant to slow down their economic sovereignty in order to balance the economies of other ASEAN members. In an extreme term, some even exploit others for their individual benefit, according to legislator Fayakhun Andriadi of the House of Representatives (DPR)'s Commission I for defense and foreign affairs. Fayakhun reminded that it should not happen certain ASEAN members continued to entertain their egoistic attitude for their individual interest, even justifying all means to 'exploit' the resources of other member countries. "Mutual exploitation should be stopped. Indonesia should take a firm attitude. It should not continue to give in, or to become a loser," the Golkar Party politician stressed in connection with the ASEAN Summit here on May 7-8, 2011. He said that through the ASEAN Summit, Indonesia should dare ask ASEAN members to stop their unfair practices. "We have to build common strength for our common progress by abstaining from mutual exploitations for individual interest," Fayakhun said. He referred to a number of neighboring countries which were trying to capitalize on new values in the free trade system, especially with regard to the World Trade Organization (WTO). "There are many examples of cases which have become a public secret on that matter. Under the cloak of free trade values they turn us a hinterland and exploit us," he said. Faykhun also reminded that Indonesia and a number of other ASEAN members should not be fooled with scenarios, for example, the open sky policy. "This will benefit smaller country and disadvantage us who have fly zones as spacious as that of European space. This is unfair," he said. In the trade sector, Fayakhun criticized the fact that Singapore had served as if it was the only gate for Indonesian exports and import. "Why exports and imports are carried out as if there was only one gate. Why can't them be shipped directly through Tanjung Priok port. Exports and imports carried out through a certain country will benefit it a lot in the form of margin transit gains," the lawmaker said. He said he did not share the opinion which said that all kinds of trade transactions on commodities or money must be through Singapore because Singapore was an international trade hub. "We cannot simply be resigned in that way. We should be aggressive in laying down network directly to consumers. It should not happen that we are the producer of a commodity but Singapore is its exporter. This is funny. Singapore is not a nutmeg producer but it is the world's biggest nutmeg exporter," he said. If all these unfair problems exist and left unresolved, Fayakhun said he was not sure the idea to establish an integrated economic community and a single currency in ASEAN would be realized. Yet, it seems, Indonesia is convinced with the AEC scheme. Achieving significant progress in the efforts to form an ASEAN Community by 2015 is one the three main priorities of Indonesia's policies as this year's ASEAN chair. "As the ASEAN chairman this year, Indonesia has three priorities and the first is to ensure significant progress in efforts to establish an ASEAN Community by 2015," President Susilo Bambang Yudhoyono said in his address at the opening of an ASEAN-European Union Business Summit at the Jakarta Convention Center on Thursday.***5*** |
Sabtu, 07 Mei 2011
ASEAN COMMUNITY FACES ECONOMIC DISPARITY PROBLEM
Kamis, 05 Mei 2011
RI TO FOSTER ASEAN-EU ECONOMIC COOPERATION
| by Andi Abdussalam |
Jakarta, May 5 (ANTARA) - Indonesia, current chair of ASEAN, is leading an effort to foster economic and trade cooperation between ASEAN and the European Union, two regions if combined together would form a huge market of one billion population and a combined gross domestic product (GDP) of US$16.7 trillion. In order to realize this, ASEAN and the European Union are now in a process to conclude a Comprehensive Partnership Agreement (CPA), according to Indonesian Trade Minister Mari Elka Pangestu said. The first ASEAN-EU Business Summit was held on Thursday at the Jakarta Convention Center. Mari said some ASEAN countries were also bilaterally conducting negotiations with the EU partners regarding the formulations of the agreement. ASEAN which is resolved to establish an integrated ASEAN Community in 2015 can learn a lesson from the experience of the European Community for the development of its regional cooperation. In its capacity as the ASEAN chair 2011, Indonesia as part of strengthening ASEAN-EU cooperation, will emphasize three priorities in this week's ASEAN Summit, namely formulating steps to achieve the ASEAN Community in 2015, to turn ASEAN as a safe, peaceful and stable region and to promote a post-ASEAN Community 2015 initiative to face global challenges. A peaceful, stable and integrated ASEAN is expected to be able to face challenges. And in this regard it needs a lesson from the EU Community. "Europe has a much longer experience in economic integration and community building. ASEAN has and will continue to learn from the European experience," President Susilo Bambang Yudhoyono said when opening the first ASEAN-EU Business Summit at the Jakarta Convention Center (JCC). During the opening of the ASEAN-EU Business Summit, which was held ahead of the 18th ASEAN Summit to be held at the Jakarta Convention Center from May 7-8, 2011, the president stressed the importance for the two sides to have a formal economic cooperation agreement. "This includes discussing a formal economic cooperation agreement between ASEAN and Europe," he said at the Business Summit which was attended by around 400 businessmen from European and Southeast Asian counties. The business summit itself was seen as a milestone in the history of the two regions' business relations. "I hope that this event will enable us to better deal with the existing challenges," Chief Economic Minister Hatta Rajasa said meanwhile adding that to be able to follow up on the summit there would be more business-to-business and business-to-government contacts. Director for international trade cooperation of the Trade Ministry Gusmardi Bustami said talks in the ASEAN-EU Business Summit would focus on five sectors, namely infrastructure, agribusiness, pharmacies, automotive and services. He said that the European Union which grouped 27 European countries was one of the main export destinations of products from the ASEAN countries which have a combined population of 500 million. If the markets of the two regions (ASEAN-EU) are combined, it will reach a population of one billion with a total GDP of 16.7 trillion US dollars per annum. Trade between EU and ASEAN last year reached 147 trillion euros. EU is ASEAN's second biggest trade partner while ASEAN is EU's fifth biggest trade partner. EU is also the biggest investor in Southeast Asia. According to President Yudhoyono, ASEAN and EU clearly are important to each other, as EU is the second largest trade partner for ASEAN, and the largest investor, while ASEAN is EU's fifth largest trading partner. Thereby, the ASEAN-EU Summit should also be used as a chance to play a role in changing the paradigm on which economic policies are made, to turn the tide of events in favor of both regions. ASEAN-EU Business Summit is a high level forum for business players and governments to deal with problems arising from trade relations between the two regional groupings. Trade Minister Mari Elka Pangestu who is also chief of ASEAN economic ministers said earlier the summit was intended to look into business and investment opportunities in both sides. The outcome of the summit will be brought to an annual meeting of ASEAN and EU economic ministers for approval. However, earlier on Wednesday, the ASEAN civil societies warned the regional grouping against the disadvantage the ASEAN would suffer if it concluded a free trade agreement with the European Union. The warning was expressed by civil societies of the Southeast Asian nations grouped in the ASEAN Civil Society Conference (ACSC) / ASEAN People's Forum (AFP). The ASEAN-EU free trade agreement, which would be signed on Thursday (May 5) can harm the interest of ASEAN members as developing countries, particularly if seen from the aspects of state sovereignty and government support for people's interest, the ACSC/APF said in a press statement. They, among others, cited as an example the EU-ASEAN patent right agreement which required ASEAN generic drugs to wait for one year longer before they could produce similar patent drugs. Member of Malaysian parliament Charles Santiago, who is also a noted civil society figure, said that the agreement would in the end destroy generic drug industry in ASEAN countries. "It is clearly not a win-win solution because it would not produce a balanced result for us as developing nations," he said. The free trade agreement is also viewed as to endanger the sovereignty of the state because European firms would be allowed to suit ASEAN countries at the International Court of Justice if they found a policy they considered harmful to them.***2*** |
Rabu, 15 April 2009
RI WANTS TO PUSH ASEAN DIALOGS WITH CIVIL SOCIETY
Jakarta, March 1 (ANTARA) - Indonesia has expressed a strong desire to push ASEAN member countries for a dialog with the civil society in the region and to establish a human rights body in an effort to improve the image of the regional grouping.
"Indonesia highly expects that ASEAN would be ready to enter this field, to have a dialog with, listen to and share views with the civil society, something which concerns human rights, the environment and equitable development," President Susilo Bambang Yudhoyono said after attending the 14th ASEAN summit in Hua Hin, Thailand on Sunday.
Indonesia also has a commitment to actively encourage the formation of an ASEAN human rights body although many parties have doubted the ASEAN commitment would be able to create a credible human rights body.
"Indonesia has been very serious since the beginning to encourage the formation of this ASEAN human rights body. Indonesia has done everything to set an example of what we are pursuing not only welfare but also respect for the law, the promotion of human rights, and freedom including freedom of the press," the president said.
Cambodia and Myanmar during the ASEAN summit objected to the election procedures of Civil Society representatives who were to have a dialog with ASEAN leaders.
Foreign Minister Hassan Wirajuda said he could understand the objection of the Cambodian and Myanmarese governments on the election procedures of Civil Society representatives.
"It is true that Cambodia tendered their objection to the procedure on the appointment of representatives of the Civil Society of a certain country. It's quite logic," he said.
The minister said the Cambodian government had complained about it because the country was not involved in appointing representatives of the civil society group who will have a dialogu with the ASEAN heads of state/government.
According to Yudhoyono, ASEAN should be ready based on its charter to have a dialog with, listen to and share views with the civil society in an effort to abolish its elitist image.
"We have to listen to them and that is the true spirit of the ASEAN charter where ASEAN should show that it is no longer elitist but cares for not only matters of government but also civil matters in all ASEAN nations," he said.
He said that dialogs and communications with the civil society were part of the process for ASEAN in implementing its charter.
"I don't want to comment too far about the technical, procedural and mechanism of the election of the civil society representatives. Thailand, in its capacity as host and as the ASEAN secretary general, has of course made preparations for it," Yudhoyono added.
The objection of Cambodia and Myanmar to the selection mechanism of civil society representatives in the 14th ASEAN summit should serve as a lesson for the next ASEAN summit.
Indonesia hopes that the process would proceed smoothly in the future.
Besides pushing ASEAN to have a dialog with civil society groups, Indonesia also hopes that the regional grouping -- which comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam -- would soon form a human rights body.
Indonesia would be very active to get the ASEAN human rights body formed not merely to promote the ASEAN image but also to create a balance and harmony between law enforcement, freedom and peace.
"But of course we must also keep in mind that the basic freedom of every human being must be respected and highly upheld and must serve as part of the future development of the ASEAN community," the president said.
The president said ASEAN was serious about creating a credible human rights body although the condition of its member countries was different one from the other.
"Of course, Indonesia's condition is different from that of Myanmar and of the other ASEAN members. Therefore, a transition, adaptation and adjustment are needed. And the change which is often successful is a gradual but steady one.
On the economic crisis, Indonesia believed that there is no panacea that could be used to resolve instantly the impact of the current global financial crisis.
"With regard to regional cooperation to minimize the impact of the economic crisis, there is indeed no panacea or solution that could instantly resolve the problem. We all are aware of this. All advanced countries are affected. Their markets become gloomy. Our exports are therefore disrupted and a number of problems are now facing all nations, including ASEAN," the president said.
All countries, including Indonesia, have done the best they could. Indonesia has done its best to contribute to minimizing the impact of the financial crisis, both at regional level in ASEAN and at multilateral level in the G-20 forum.
"All countries wanted to do their best so that the global economic crisis would not worsen. Instead the recession would eventually stop so that the world economy would revive," President Yudhoyono said.
However, all of the efforts are not without limitations so that regional and multilateral cooperation are being established, the president said.
In order to help cope with the financial crisis, Indonesia has proposed three levels of cooperation schemes in the G-20 forum in the United States last year.
"The three levels of cooperation schemes are cooperation at multilateral level, cooperation at regional level and cooperation at national level," he said.
At regional level, Indonesia worked together with ASEAN to establish the Chiang Mai Initiative. ASEAN also agreed to increase intra-economic cooperation in trade and investment and agreed not to adopt protectionism.
Indonesia in its capacity as chairman of the Indonesia, Malaysia, Thailand Growth Triangle (IMT GT) and the Brunei, Indonesia, Malaysia, Philippine East ASEAN Growth Area (BIMP EAGA), has specifically proposed that sub-regional cooperation should provide stimuli packages for infrastructure development ***1*** (T.A014/A/H-NG/A014) (T.A014/A/A014/A/A014) 02-03-2009 00:40:34