The Ministry of Trade was
still not in a position to promise that the Regional Comprehensive Economic
Partnership [RCEP] would bring maximum result in fostering economic integration
within the Asean Free Trade Partnership AFPs. Some countries wished there was
commitment to positive list of economic growth. Some countries expected that
commitment to strengthening market access be put at negative list.
“The scheme is positive list the way we had applied in
WTO meeting. We plan to combine positive and negative list known as hybrid
approach.” The Director General of International Trade Cooperation [KPI] of the
Ministry of Trade Bachrul Chairi disclosed to Business News [27/10].
AFP’s consisted of Australia, China, India, Japan, South
Korea and New Zealand with 10 Asean member countries held a meeting in Jakarta
on October 27 – 28 2014. Some meeting agenda was follow up of previous meeting
encompassing trade in goods, services and investment [trading, service and
investment]. Ex Trade Minister Muhammad Lutfi previously saw RCEP as a form of
Asean integration into global, economy. Asean was part of original dynamics and
liberalization in trading, service, and investment.
“Each country made a different approach. What we did
together at the first meeting in Sydney, was based on different approaches.
Some countries were still studying the case. In the end we expect agreement by
all member countries, 16 of them”
The Ministry of trade still saw the prospect if RCEP
economic value, i.e. USD 21.3 trillion which was equal to 30% of total world’s
economy. Total trading volume of RCEP member countries was posted at USD 10.7
trillion or 29% of world’s trading volume. Meanwhile total Direct Foreign
Investment [FDI] in RCEP was USD 339.8 billion or 23.4% of world’s FDI. Asean
market shares was only benefited by 600 million people.
But if Asean and AFP’s were combined the total population
was 3.4 billion. Asean GDP constituted only 45% or USD 2.6 trillion. At RCEP
level the potential came to USD 21.6 trillion or equal to 30% of total world’s
GDP. Indonesia’s export to RCEP countries constituted 16% addressed to 15
export destination countries.
Indonesia’s import constituted 58% of total import,
meaning the role of RCEP countries in trade communication was getting more
significant. “The important thing is that 16 RCEP countries are integrated in
global value chain. We have seen success story in automotive exporting, global
value chain is prevalent in the world market”
The Ministry of Trade simultaneously consolidate
commitment for goods and service capitalizing and investment within the RCEP –
TNC platform and await for directives by the newly appointed Minister of Trade
Rahmat Gobel. After a 3-day meeting in Jakarta, the Ministry of Trade rated
that the process was only at the stage of probing for market liberalization for
16 countries. “We are still discussing capitalizing in the second day of
meeting, but at interdepartmental stage we have already done exercises toward integrated
liberalism.”
The 3-day meeting from October 26 to 28, 2014 in Jakarta
was a way to support the 6th meeting in India next month. RCEP was a
forum for implementation of Free Trade collaboration among Asean states plus 6
partner countries. In principle RCEP was also based on Free Trade Agreement
[FTA] with extended collaboration with 6 partner states. “Meeting outcome was still
subject to directives by the newly appointed Minister of Trade Minister of
Trade – which was also related to President Joko Widodo’s Master Strategy
Guideline called Nawa Cita. Now Indonesia was determined to be politically as
well as economically sovereign. We are looking forward to Indonesia’s new
position at RCEP.”
Bachrul saw Trade Minister Rachmat Gobel as
industrialist. Naturally the Ministry of Trade could understand trading
problems within the context of industry. Certainly the Trade Minister could
understand various trading problem within the context of production and
marketing. Apparently PT Panasonic, the company that Gobel managed showed
outstanding performance, “as we know” Bachrul said, “Panasonic products are in
the world market. Panasonic achievement is a reflection of good
entrepreneurship of its owner, and Mr. Rachmat Gobel must be well versed with
production and marketing strategies. He should be able to give good directives
for Indonesia’s positioning at RCEP.”
The Ministry of Trade saw that there were two frame of
reference to discuss effort to promote international trading. The first frame
of reference was the Asean Economic Community 2015 which was expected to jack
up Indonesia’s economic growth by 7% - 8% per year. This target would race neck
to neck industrial growth at home. “Ideally industrial growth should grow by 9
percent. More over not all products could be marketed at home. The export
market is getting more and more important.”
The other frame of reference was protection of the
domestic market. The domestic market must be protected but on the other hand
the Government was obliged to reduce obstacles with partner countries. There
was no other way to respond to the ever competitive global market by increasing
productivity. Indonesia’s export of automotive products had reached around USD
4.5 billion. Two years from now, if performance turned better, export of
automotives could reach around USD 5 billion. “In the next 3 years our
automotive export could be USD 10 billion. This is part of the projections
based on the Asean Economic Community.” (SS)
Business News - October 31, 2014
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