Report Charts Indonesia's Progress Towards Bogor Goals - Predicts Expanded Investment
An independent APEC report has predicted that domestic and foreign investment in Indonesia will expand as the government?s reform efforts are realized and confidence in the economy grows.
The "Indonesian IAP Study Report" is a review of the implementation of Indonesia's Individual Action Plan (IAP) to achieve APEC's free trade and investment goals.
IAPs serve as a roadmap for APEC economies to achieve the goals of free and open trade and investment in the APEC region. These goals have particular significance for Indonesia as they were established at the meeting of APEC Leaders' in Bogor, Indonesia, in 1994. The Bogor Goals set the target of free trade and investment in the APEC Region at 2010 for industrialized economies and 2020 for developing economies.
In the report compiled by Dr. Inkyo Cheong, from the Inha University in Korea, Indonesia is noted to be continuing efforts for trade and investment liberalization and economic reform.
"At the current pace of policy and structural reforms, it is believed that the country can meet its commitments of trade and investment liberalization by 2020," Dr. Cheong said in the report.
"To achieve the Bogor Goals of trade liberalization by 2020, Indonesia is in the process of eliminating tariffs and barriers to trade on services and investment, as well as advancing business facilitation.
"Despite the difficult domestic and international circumstances faced by developing countries, Indonesia has clearly stated its position regarding the Bogor Goals. As the government's will for reform becomes realized, the efforts for liberalization in Indonesia will accelerate and the trade-investment environment will improve. Then, domestic and foreign investment in Indonesia will expand and the economy will be back on the growth track that will bring about low unemployment and stabilization in consumer price levels.
The report found that Indonesia has shown meaningful commitments to the achievement of the Bogor Goal by binding tariff rates and reducing bound tariff rates since 1996.
"According to the Indonesian IAP, the country has carried out systematic efforts to remove government-based restraints on trade, industry and the empowerment of the private sector. This has been through a consistent process of deregulation, de-centralization and de-bureaucratization," Dr. Cheong said.
The report also notes the damage suffered by the recent tsunami and states "thanks to the support from the international community and active measures taken by the government, the situation is gradually becoming stabilized."
Excerpts from each of the thirteen areas of assessment are now available by clicking here. The full report will be available on the e-IAP website once it has been presented to APEC Senior Officials in Seoul on March 4.
Seven APEC Member Economies are having their IAPs' reviewed at the current round of APEC meetings in Korea. This process involves a presentation by the Independent Expert to a meeting of Member Economies followed by an opportunity for these economies to question the economy under review on the details of their IAP. The review of Indonesia's IAP took place in Seoul this morning.