Indonesia vows to support free trade

Lilian Budianto, The Jakarta Post, Jakarta | Fri, 01/23/2009 7:40 AM  

Indonesia will remain committed to free trade and will avoid protectionism as it copes with fallout from the global financial crisis, the Foreign Minister says. 

Delivering his annual foreign policy address in front of scores of foreign ambassadors Thursday, Hassan  Wirajuda said Indonesia would “anticipate a global crisis that threatens to trigger a global economic recession — even depression with an appeal to free trade”. 

“Anticipating this [crisis], Indonesia appeals that we remain committed to free trade and will avoid protectionism. 

“Indonesia will continue to strengthen its economic cooperation with traditional partners, while continuing to improve our ties with non-traditional markets, such as Russia, East European countries, Latin America and Africa,” Hassan said. 

The current financial crisis has brought fears that worldwide economies might tighten import regulations and tilt toward protectionism, moves many say would worsen the situation. 

The failure of the Doha Development Agenda and the ensuing worry about protectionism will somehow provide an opportunity for cooperation and integration in the East Asia region, with ASEAN in the driving seat in those dynamical process,” he said, referring to the 2001 World Trade Organization agenda to liberalize trade. 

Indonesia is one of 10 member states of ASEAN, which recently enacted its first laws and aims to become a unified market by 2015. 

Hassan’s remarks came amid efforts by Indonesia’s Finance Ministry to crack down on the smuggling of illegal products into the country, with a particular focus on increasing security at Jakarta’s main port, Tanjung Priok. 

Indonesia’s economy rode out a financial meltdown that hit in the third quarter of last year to post a growth of 6.2 percent for the year, only slightly down from the forecast of 6.6 percent. 

Hassan said April’s general elections represented the opportunity for Indonesia to demonstrate its maturity by providing the chance for change through a democratic mechanism. 

The legislative elections are scheduled for April 9, and the presidential election will be held in July, with a possible second round in September should the first round not produce a clear winner. 

“We will ensure that our elections are free, fair, democratic and peaceful. Successful elections will certainly strengthen and further consolidate our democracy,” he said. 

Indonesia launched the Bali Democracy Forum last December as a medium for Asian countries to discuss effective ways to enforce democracy. 

It has also hosted a number of interfaith and peace initiatives. 

Hassan also highlighted the role of Indonesia as “a bridge and consensus builder” in the UN Security Council, especially in its role as a non-permanent membership from 2007 to 2008. 

“Indonesia never failed to ensure that all members fully complied with fundamental principles, in particular, respect for national sovereignty and territorial integrity. Indonesia consistently rejected unilateral separatism as demonstrated in the cases of Kosovo and Southern Ossetia.” 

He praised Indonesia for successfully ending a human rights dispute with its former province Timor Leste without employing the assistance of an international tribunal, as well as its strides in combating terrorism, which prompted the United States last year to lift an eight-year-old travel warning against Indonesia.