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ANTARA, September 22, 1999

Observer-Embargo: Economic Embargo By Canberra Advantageous To RI,
Says Observer

Surabaya, E.Java, Sept 21 (ANTARA)-The economic embargo Australia
is threatening to clamp on Indonesia over the East Timor issue
will actually work to Indonesia's advantage, an economic observe
said here Tuesday.

"I think, the threat of economic embargo by Australia is just
bluff, because if it is really carried out it will only benefit
Indonesia," Prof Dr H Suroso Imam Zadjuli SE of the Surabaya-based
Airlangga University said.

Zadjuli said, he based on his observation on the fact that the
Australia-Indonesia international trade has always been a deficit
to the former.

The economist disclosed that the value of Australian trade in
Indonesia makes up only one percent of the total of Indonesia's
international trade.

"Japan tops the list with 40 percent of the foreign investment in
Indonesia. Australia makes up just one percent.

"An embargo will only benefit Indonesia's domestic trade because
the local entrepreneurs will grab the opportunity in developing
the commodities which have been heretofore supplied by Australia,"
said Zadjuli, who is dean of the University's school of economies.

The dean pointed out that Australia has two main commodities in
its trade with Indonesia namely beef and phosphate fertilizer.

"Local entrepreneurs (in Indonesia) will be able to substitute
Australian beef by local meat, which is comparable in quality but
cheaper in price," Zadjuli observed.

Meanwhile, Indonesia can substitute Australian phosphate
fertilizer by import from Jordan and Algiers, which are cheapers.

According to economist, an economic embargo against Indonesia will
be suicidal to Australia, because it needs much more expenses in
carrying out international trade with other countries because it
can not go through Indonesia's territory.

Asked the possibility of Australia joining hands with other
countries to carry out the threat, Zadjuli said that the other
countries would not be likely to agree because Indonesia is a
potential market and has great natural resources.

"Even if they conspire to impose economic embargo together,
Indonesia can survive for years because it has abundant potential
of rice, textile, fish and other needs," he said.

(SBY-08/SBY-06/INT-NS/18:35/INT-AJM-23:06/NN01/23:26/TB06)

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Didistribusikan tgl. 24 Sep 1999 jam 08:14:04 GMT+1
oleh: Indonesia Daily News Online <[EMAIL PROTECTED]>
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