Ladies and gentlemen,

Assalamu 'alaikum Warahmatul/ahi Wabarakatuh,

May Peace Be Upon All of Us,

At the outset, please allow me, on behalf of the government and people of Indonesia warmly welcome you, especially those who come from foreign countries, in order to participate and become speakers in this seminar. During these days Jakarta is poured by rain that is indeed beyond normalcy. As a result, various parts as well as some residential areas in the city have been inundated; it also caused heavy traffic congestions. I hope that it would not influence your active participation in this important seminar as well as your stay in Jakarta.

I warmly welcome the organization of this seminar. And in my opinion, it will enhance the momentum of implementing the scheme of Common Effective Preferential Tariff (CEPT) that we have launched on January 1, 2002. We value that this scheme is a starting point of our concerted efforts in materializing ASEAN as a Free Trade Area (AFTA). This scheme will also become a litmus test for the ASEAN countries to concretely implement the agreement in the field of economy and at the same time to solidify the similarity factors, which they commonly possessed, and to bridge the prevailing differences.

We are fully aware - at its early stage - this scheme will only cover several products, and be temporarily implemented against Brunei Darussalam, Indonesia, Malaysia, the Philippines, Singapore, and Thailand. In due course, on par with the condition and readiness of the respective countries, we will also implement it to the rest of other ASEAN countries in accordance with the timetable planned by and commonly agreed upon.

        In unison we developed this agreement, and through it also ASEAN has proven its ability to concretely cooperate. Indonesia is of the opinion that this step is not only realistic, but also shows our determination to gradually materialize our commitment to respectively opening up and mutually helping in our common livelihood in the region.

        It is only normal that at this early stage worries enveloped us. Not only do these worries cover the possibility of a given country sacrificing rather than gaining benefits from the scheme, but it also questions the success of AFTA as a whole. Honestly, the same feeling had also entrapped me. In the midst of difficulties - especially recently when Indonesia's economy is encountered by formidable hurdles - I indeed needed time to reflect upon, digest and comprehend all the consequences before taking the decision that Indonesia, together with others, has to be courageous to embark upon it.

        It is with full awareness that. we designed the CEPT with its format we currently possess. As an initial stepping-stone to implement the AFTA, we decided to limit its application only to some varieties and groups of products as well as on its counter mechanism. We will gradually implement it. In my view, it is only understandable should we be prudent enough in designing such an important attempt. All of this is indeed novel to us. We are jointly learning by doing. We need to help each other and together encounter all the difficulties, which may arise in the future and at the same time find their solutions.

        I firmly believe that we will be able to confront all challenges and hence better manage this agreement. During this period, we certainly need openness, togetherness, tolerance and sincerity among us. During this trying period we also need - more than ever before a mutually beneficial spirit of cooperation rather than a sense of competitiveness in which a given country regards others as a threat and merely indulges its drive to manipulate others' weaknesses in an attempt to take benefits at all times. Or, worse still, prevent them from progressing. It indeed requires the willingness of all parties to not merely score their own interests and prevent others from gaining benefits from this cooperation. It indeed solicits our understanding of the difficulties encountered by our partners when they really need it and help them without manipulating their flaws. I firmly believe that should we be able and keen to jointly work, we will be able to achieve the goal to improve the welfare of our people in a more speedily fashion.

        It may not be surprising; if at a certain point in our common endeavors there will be one of us encountering difficulties. In my view, we will need a clear and practical mechanism to iron out these problems. It is also understandable that in each and every endeavor to develop a new system - in whatever field - we need to have an instrument to urgently crack down such a situation. I think it will bring us some benefits to provide such an 'escape clause '.

        Another thing that should be taken into account is that AFTA is only a vehicle to materialize the welfare, prosperity, security as well as the peace and livelihood all of nations in the region. Hence, I wish to personally reiterate that there is an urgent need for us to generate this mutually reinforcing action and attitude at this early stage. In due course, when and if our capabilities had been duly developed, the economy would take each own path and bring into the society's livelihood - especially for those operating therein - suitable regulations.

        Only with this condition we will be able to deliver a solid intra - ASEAN economic livelihood and enhance the region's competitiveness in the global market. Only with it will we be also able to possess the strength to collectively gain benefits from our relations with other trading countries of ASEAN.

        With this initial step, we are indeed entering an era that is so pivotal in the ASEAN's economic cooperation. By fielding this point, I wish to reiterate that during this critical stage we have to be really able to form a solid foundation for our cooperation. Only by so doing, will we be able to mutually guarantee that at the latter stage there would be no direct or indirect efforts - apart from we are being aware or not - exerted to lessen or weaken our commitment.

Ladies and gentlemen,

        It is our hope that through AFTA the intra-ASEAN trade would excel further. And, through AFTA there will also be an improvement of income of its members individually or collectively. We also hope that the regional demanding and bargaining powers would increase which, in turn, also increase the intra-ASEAN trading volumes. Cognizant of the prevailing potentials that we have, this hope is not indeed unwarranted. In 1993 our trading value reached US$ 44 billion, and increased approximately US$ 95 billion in 2000 or increased approximately 11.6% per annum. looking at these figures, I am optimistic that we will be able to materialize AFTA.

        Nevertheless, please allow me to once again chart my vision on ASEAN as a whole. As I previously mentioned; AFTA with its CEPT is merely a vehicle. It is not an end in itself, for what really matters is how to deliver a prosperous and peaceful livelihood to all ASEAN countries.

        It is against this backdrop that I wish to reiterate Indonesia's commitment to abiding by all agreements agreed upon by ASEAN countries, including the implementation of AFTA. I also wish at the same time, to re-stress the importance of our common commitment and sincerity in implementing AFTA in accordance with the directive and schedule jointly agreed upon. By divulging this point, I intend to call upon all parties to strictly abide, fulfill and implement all the commitments we have so far pledged.

        Through this august event, I particularly wish to appeal to all business circles in Indonesia to fully seize the momentum in an attempt to improve their production efficiency and competitiveness I personally know and understand their grievances and difficulties in embracing this AFTA. Notwithstanding, I still wish to momentarily call upon you to see this from another viewpoint and take it as a challenge to better improve and strengthen yourselves. I would also like to appeal to all Indonesia's businessmen to be courageous to compete in the ASEAN as well as global markets and not to confine themselves only in the domestic market.

Ladies and gentlemen,

        These are my remarks and hopes, which I wish to share with you. I am indeed gratified to have the honor to be present in the opening ceremony of this seminar hoping that it would benefit all of us. I encourage you to actively participate in this important undertaking.

        Thank you.

        Wassalamu 'alaikum Warahmatullahi Wabarakatuh.

Jakarta, 31 January 2002

PRESIDENT OF THE REPUBLIC OF INDONESIA