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Agriculture and fisheries ready for TPP, economist says
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Illustration.(tempo.co) (tempo.co)
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Agriculture and fisheries products will be Indonesia's best placed goods when it comes to competing in the Trans Pacific Partnership (TPP), an economist has predicted, presuming Indonesia joins the partnership in 2018, unprepared though it is.
The Institute for the Development of Economics and Finance (Indef) acknowledged that the pact would broaden Indonesia's export market. However, they argued that a bigger market would mean a disaster if the country was unable to provide more competitive products.
'Actually, the TPP is a concept that presumes a [trade] barrier needs to be taken out. Let's say, it is like cleaning a sewer to make the water flow smoothly. The question is: Do you have that water?' Indef's executive director Enny Sri Hartati told kompas.com in Jakarta on Tuesday.
Enny believes that without a strong economy and business climate, the TPP's effect could be counterproductive as Indonesia's goods will become pricier and less competitive. If that happened, then Indonesia would see a massive flow of imports amid stagnant exports, she added.
Enny said that agriculture and fisheries products were likely to be the best prepared commodities for joining the TPP. As for other sectors, better interdepartmental coordination was badly needed, she said, to improve the country's competitiveness and production quality.
'Yes, it is the Trade Ministry's duty to abolish some trade barriers. But after that, the question they need to answer is what goods will they sell?' she asked.
Trade Minister Thomas Lembong highlighted two reasons for Indonesia to join the TPP. First, the TPP could be the only way for Indonesia to progress. Second, Indonesia was already advanced and prepared enough to ratify the agreement.
The ministry has been reviewing the TPP draft, comprising 6,000 pages, and at the same time focusing on preparing an economic agreement with the European Union. The pact would be inked within two years, the minister said.
"We will be ready for the TPP in three years, a year after [signing our trade deal] with the European Union. We must set a target. Imagine being assigned homework with no deadline; it would never get finished," he argued. (ags)(+)
