With
US President Barack Obama and President Susilo Bambang Yudhoyono both facing challenges to create jobs
and raise people’s welfare at home, the meeting between them will end in deals to maximize economic
gain, experts say.
Obama
has said that he would double the US’s exports to Asia, especially to the
prosperous East Asia, while Yudhoyono told a gathering of Indonesian envoys
last week that a priority of Indonesian foreign policy was to bring economic
benefit and investment back home.“It’s all about economic gains. The US will
make Indonesia a market for its products,” Alexius Jemadu, the dean of
University of Pelita Harapan’s School of Social and Political Sciences, said Sunday.
Golkar
Party legislator Tantowi Yahya agreed that Obama’s visit would mainly address
how both countries could maximize economic gain in their bilateral relations. “We
have to take advantage of Obama’s connection to Indonesia,” he said.
Alexius
said that apart from rivaling China in gaining political influence in its
strengthening presence in Asia, the US also wanted a piece of the economic
benefits in the region.
He
said Indonesia should use its potential as a huge market for US products as a
bargaining chip when negotiating a strategic partnership with the US.“The
recent US anger of our regulation to restrict film imports shows the country’s
goals. They want to protect their movie industry,” Alexius said.
Deputy
US Trade Representative Demetrios Marantis raised the issue with senior
Indonesian officials last week, just over a month ahead of a planned visit by
Obama, the US embassy said.“If implemented, the ministry of culture and tourism
decree will disrupt bilateral trade in movies at a time when we have been
working hard to improve the bilateral relationship,” he said in a statement.“The
decree will severely restrict the availability of foreign films in Indonesia,
harming stakeholders including Indonesian cinemas that want to display foreign
movies and Indonesian patrons that want to watch them.”
The
dispute centers on Indonesia’s plans to ensure that all movies shown in the
archipelago are replicated by Indonesian firms.“The only beneficiaries would
appear to be the one or two replicating firms being granted an oligopoly on the
replication of films in Indonesia,” Marantis said.
His
statement went on to say the proposed regulations would have the effect of
imposing “sweeping new restrictions on imports of US films into Indonesia”.
Trade
representative spokeswoman Carol Guthrie added, “We have asked that Indonesia
remove the decree.”“If companies want to replicate elsewhere and then export to
Indonesia, they should have the flexibility to do so.”
International
law professor Hikmahanto Juwana from the University of Indonesia said the
ministry had to coordinate with other institutions, especially the Trade
Ministry and the Business Competition Supervisory Agency (KPPU), to avoid
negative impacts from the regulation.
“The
Trade Ministry is the focal point in WTO negotiation, and they know if it
creates discrimination, while KPPU can assess if the regulation will create a
monopoly, as feared by the US,” he said.
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