Indonesia could suffer as result of free trade agreements, say NGOs
13 April 2007
Indonesia could suffer as result of free trade agreements, say NGOs
The Jakarta Post, Jakarta
Indonesia could suffer losses as great as, or even worse, than those that other developing countries have suffered as a result of entering into free trade agreements, such as the proposed Economic Partnership Agreement (EPA) with Japan, says an international NGO.
"Through Free Trade Agreements (FTA), the developed countries squeeze developing countries, such as Indonesia," Bert Maerten, Oxfam’s regional campaign coordinator for economic justice, told a conference Thursday.
Oxfam is an international NGO that focuses on "poverty and injustice alleviation."
"With these agreements, the commercial interests of the developed countries prevent developing countries from growing their industries," he argued.
Last November, Indonesian President Susilo Bambang Yudhoyono and Japanese Prime Minister Shinzo Abe agreed on the key elements of the proposed EPA, which some NGOs here say is a threat to the Indonesian economy.
"We cannot predict the precise consequences that will accrue after the signing of the agreement, but we can learn from what has happened in other developing countries," said Tejo Wahyu Jatmiko, the coordinator of SBIB, a local NGO network.
Studies by Oxfam show that more than 1.3 million Mexicans working in agriculture were forced of the land during the first 10 years after the coming into effect of the North American Free Trade Agreement (NAFTA), which was signed by Mexico and its major trading partner, the U.S., in 1994. In addition, 200,000 manufacturing jobs were lost between 2001 and 2004.
To prevent this from happening in resource-rich Indonesia, Tejo said the government needed to thoroughly sound out all aspects of the EPA before signing it.
"The EPA is still at the initial stage. But what concerns us more are the details that will follow," he said.
According to Tejo, the government had never been transparent about the key elements of the proposed EPA, and had never sought submissions from those who might be affected by its consequences.
He also said that the Japanese government appeared to want to "control Indonesia", as shown, for example, by the fact that the Japanese side had warned that it would not sign the EPA if the Indonesian parliament failed to endorse the investment bill.
The bill was passed into law in late March amid strong protests from local ultra nationalist and left-wing activists.
In addition, Maerten said that other countries in the region, like Malaysia, the Philippines and Thailand, would also be affected by the EPA with Japan.
Both NGO executives recommended that Indonesia pursue a multilateral approach, rather than a bilateral one, with developed countries in order to increase its bargaining power.
