Editorial: The APEC summit, again

Fifteen years ago, when then president Soeharto hosted the Asia-Pacific Economic Cooperation (APEC) summit in Bogor, West Java, the leaders issued the Bogor Declaration, containing seven commitments to liberalize trade and investment in the region. The leaders at that time vowed to reduce trade barriers and accelerate free flow of goods, services and capital among members by 2020.

But when the leaders meet in Singapore this weekend what will this non-binding organization have actually achieved? Is it true that APEC has become much less relevant now?

There is growing criticism to the participation of Indonesia in multilateral organizations such as APEC, the Asia-Europe Meeting (ASEM), the Association of Southeast Asian Nations (ASEAN) and the world's top 20 economies (G20), since most of their decisions are non-binding. We Indonesians tend to be inward-looking. But despite their slow progress, we must say Indonesia should be active in such international forums. It is not just a matter of short-term profits.

Just look at APEC's achievements, which many Indonesians may overlook. Since its establishment in 1989, the forum has achieved tremendous progress, according to a study conducted by the Policy Support Unit. The study, conducted by independent experts, concludes that APEC members trade with each other more than they do with other free-trade agreement partners, and much more with trading partners who are both members of APEC and members of the WTO. As reported by the Associated Press (AP), the study concluded a de facto economic integration among members is also growing fast.

Trade among the 21 member economies, including Hong Kong and Taiwan, accounted for 45 percent of total world trade in 2007, and makes up more than 54 percent of global gross domestic product, from a population that is about 40 percent of the entire world population. This means that despite its voluntary-based principles, APEC has played an instrumental role in providing Indonesian products greater access to the members of the trade forum.

When the APEC leaders meet in Singapore this weekend, Indonesia can use the forum to strengthen its bilateral trade ties with other members. It is very true that APEC should move faster. But again, it is not true that APEC is only a waste of our time and energy.