Institute for National and Democratic Studies

INDIES Criticize Government Vows on Free Trade

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Jakarta, INDIES. The Institute for National and Democratic Studies (INDIES), independent association that focus on national sovereign issue, criticized the government commitment to pursue the free trade policy. The government vows will only aggravate the social and economic destruction in the Indonesian society.

Syamsul Ardiansyah, executive director of INDIES said that Indonesia must prioritizing the national concern, by creating more jobs and increasing the welfares of the people rather than facilitating foreign investors that will only serve the need of the monopoly capitalist of the developed countries.

Indonesia must stop the free trade policy to secure the national economy from the attack of the dumping import commodity of the international market. Indonesia must also give more spaces for the national economy by giving sufficient protection to the national economy.

Indonesia must realize that in facts many countries, particularly developed countries like the United States were actively protecting their economy due unilaterally or multilaterally. There is much evidence that showed that European Union and the United States had systematically used the WTO’s commitment not to pursue the free trade, but to protect their economic interest.

Ardiansyah said that protectionism in one side and push for trade liberalization in other had always been the policy of many developed nations to secure themselves from the crisis of overproduction. “The economic recession will create more policy on protectionism,” state Ardiansyah.

As been reported by mass media, during the annual foreign policy address in front of scores of foreign ambassadors, Foreign Minister Hassan Wirajuda said that Indonesia will committed to free trade and will avoid protectionism as the anticipation of the financial crisis (The Jakarta Post, 01/23/2009).

Indonesian economic had never been better since hit by 1997 Financial Crisis. The gap on balance of trade and payment were wider. Because of the crisis, Indonesia forced to privatized public sectors, including health and education. Around 70 percent of the 230 million people were depend on agriculture which only contribute 15 percent of the GDP.

More than a half of the people were live with income less than US$2 per-day. More than 10 million peoples were unemployed, the rate of malnutrition and hunger always high, natural disasters caused by human activities were intensified. Economic crisis had created suffer and misery to the people.

After the 2008 financial crisis, 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.

Right now, Indonesia need to be recovered by reutilizing the national independence in economic that must be strongly based on the people sovereignty.***

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Written by INDIES

January 23, 2009 at 9:24 am

Posted in Uncategorized

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