ID :
30106
Thu, 11/13/2008 - 23:40
Auther :
Shortlink :
http://m.oananews.org//node/30106
The shortlink copeid
PROTECTIONISM TO RISE IN 2009, OBSERVER SAYS
Jakarta, Nov 13 (ANTARA) - An economic observer said here on Thursday he believed many countries would implement protectionist economic policies amid the current global economic turmoil.
"Not only advanced countries like the US, Japan and those in Europe but almost all countries, including China, will become protectionist in an effort to protect their domestic economies," Imam Sugema from INDEF said.
He said the current crisis was threatening the real sector. "In advanced countries like the US the real sector has already been hit causing mass lay-offs," he said.
Therefore, he said, the US would likely adopt an inward-looking economic policy so as to protect its industries and create jobs for its people.
Such a policy would eventually lead to severe restrictions on imports. "If they can't protect through tariffs, they may use environmental issues to limit imports," he said, adding that the policy would not only be adopted by the US but also by Europe.
He said it was not impossible that Indonesia's crude palm oil exports would be affected, the more so if the US succeeded in developing a CPO substitute industry.
"They will develop their industries and prevent the entry of our CPO using various methods, including the excuse that Indonesian CPO is not environmentally friendly," he said.
Protectionism would also be exercised by other countries including China. He said China would encourage exports to developing countries because its exports to the US would be eroded and in that respect it was not impossible that Indonesia would be flooded by cheap products from China.
"Certainly this will affect our economy as the Chinese products will be a disaster to our industries," he said.
He therefore called on the government to be alert by strengthening the domestic sector meaning that it should not only campaign to promote preference for domestic products but also give incentives such as tax cuts for buyers of domestic products.
An economic observer from the Indonesia on the Rise Team, Hendri Saparini, shared Sugema's views, saying the government should increase employment opportunities and secure domestic industries.
He said the government must support projects that provide employment such as infrastructure projects.
The government also needed to give incentives to companies that did not lay off workers or were able to employ more workers. "This is important for the domestic economy," he said.
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"Not only advanced countries like the US, Japan and those in Europe but almost all countries, including China, will become protectionist in an effort to protect their domestic economies," Imam Sugema from INDEF said.
He said the current crisis was threatening the real sector. "In advanced countries like the US the real sector has already been hit causing mass lay-offs," he said.
Therefore, he said, the US would likely adopt an inward-looking economic policy so as to protect its industries and create jobs for its people.
Such a policy would eventually lead to severe restrictions on imports. "If they can't protect through tariffs, they may use environmental issues to limit imports," he said, adding that the policy would not only be adopted by the US but also by Europe.
He said it was not impossible that Indonesia's crude palm oil exports would be affected, the more so if the US succeeded in developing a CPO substitute industry.
"They will develop their industries and prevent the entry of our CPO using various methods, including the excuse that Indonesian CPO is not environmentally friendly," he said.
Protectionism would also be exercised by other countries including China. He said China would encourage exports to developing countries because its exports to the US would be eroded and in that respect it was not impossible that Indonesia would be flooded by cheap products from China.
"Certainly this will affect our economy as the Chinese products will be a disaster to our industries," he said.
He therefore called on the government to be alert by strengthening the domestic sector meaning that it should not only campaign to promote preference for domestic products but also give incentives such as tax cuts for buyers of domestic products.
An economic observer from the Indonesia on the Rise Team, Hendri Saparini, shared Sugema's views, saying the government should increase employment opportunities and secure domestic industries.
He said the government must support projects that provide employment such as infrastructure projects.
The government also needed to give incentives to companies that did not lay off workers or were able to employ more workers. "This is important for the domestic economy," he said.
***2***
