U.S. hopes Obama trip will boost trade with Indonesia

[Turborama]

Source: Reuters

The United States hopes President Barack Obama's visit next week to Indonesia will help spur reforms that boost trade with Southeast Asia's largest economy and the world's fourth most populous nation.

"Economic nationalism, regulatory uncertainty and unresolved investment disputes give pause to American companies seeking to do business in Indonesia," U.S. Secretary of Commerce Gary Locke said in a speech on Wednesday.

To increase trade, "it's incumbent upon Indonesia to make market-oriented reforms that will make it a more attractive market, not just for U.S. companies but companies all around the world," Locke said.

"Growing trade with Indonesia is a piece of the president's broader plan to create jobs here at home by growing market access overseas."

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2010/03/17/AR2010031702753.html

---

Something to counter the NeoCons' "http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=385x444002#444105">apology tour part 2" meme with.

[madrchsod]

1. cool.... more cheap goods for the us market and.....

the usa can sell them military hardware and population control technology...that`s what i call a "win-win"

[Turborama]

3. Those comments are prejudiced, verging on racism

You think the only thing Indonesians want or will buy from the US are "military hardware/population control technology" and all they have to offer are "cheap goods"?

Try reading the whole article to learn more about what you speak.


"The United States exported $5.1 billion of goods last year to Indonesia, led by civilian aircraft and farm goods such as soybeans, animal feeds and cotton.

U.S. imports from Indonesia were just $12.9 billion last year, included clothing and textile goods, furniture, electronics, computer accessories and coffee."

[Mithreal]

4. Turbo, that's pretty weak.

Where's the prejudice or racism? Maybe you are more sensitive, aware, or knowledgeable, so please explain.

The post you responded to is not outside the realm of possibility even having read the article myself.

Not much highlighting on this being about more free trade agreements with the United States. Odd, don't you think, especially since average Americans want more of these deals?

[Turborama]

6. Immediately assuming that Indonesians need 'population control'

and Indonesia only produces "cheap" goods is weak minded racism, in my book. And if you think it's "within the realm of possibility" as well, then you're just as bad.

There is nothing in that article about 'military hardware' or any of the other goods the poster mentions.

The points the poster brought up were from the mindless "Obama is the same as Busch. The USA is still run by NeoCons & the MIC and is only interested in selling death and controlling 3rd world countries" paradigm which is unfortunately all too prevalent on DU these days.

I'm totally sympathetic with "fair trade" rather than "free trade", in fact, that's one of the reasons I'm a strong proponent of CSR, but prejudging that the trade between Indonesia and the US under the Obama administration will consist of weapons and birth control for cheap goods is disgusting and wrong on many levels.

FYI I am an expat living in Indonesia (for 4 1/2 years now), am married to an Indonesian, have many Indonesian friends and work with several Indonesian business partners, so yes I am "more sensitive, aware and knowledgeable".

[Mithreal]

7. You and I interpreted it a little differently.

I appreciate your thoughtful response. It certainly clarifies your charge and I think that's probably a bare minimum expectation if we ever throw that word at someone.

I only intend to explain how I read it differently, not necessarily defend it, just maybe make it clearer why I was surprised by your response.

1. Most understand that Free Trade agreements are not about protecting American labor but are about making multinational corporations wealthier.

2. Where labor costs are cheaper you get "cheap goods." I didn't take it so much to mean crap, but more that what was imported would put more Americans out of work.

3. America's leading exports include weapons, no? That there are other types should come as no surprise. I really just took this as a swipe at our role as the world's weapon dealer.

4. The "population control" I just took as a humorous way of saying weapons of mass destruction.

Don't think I missed anything that I intended to explain. I can definitely see how we read something entirely different.

Ok, I won't dispute sensitive and knowledgeable but maybe you are more aware now it may not have been intended as offensively as it first seemed. I read a lot of comments from madrschod, don't think I ever noticed anything that would be intended to come across how you read the comments. I do this all the time, write something and after reading it, realizing it is open to multiple interpretations. A lot of times I only realize after someone responds. Alright, take it easy.

[Turborama]

10. Thanks for your explanation, however...

The trade agreements than Obama is intent on persuing would benefit both the US and Indonesia.

Talking about reading things differently, you seem to be worried about President Obama pursuing "Busch-esque" Free Trade agreements and the American market being flooded with cheap goods from Indonesia. I actually got something different from the article:

"Growing trade with Indonesia is a piece of the president's broader plan to create jobs here at home by growing market access overseas."

I took this to mean that hopefully more American products will be available here.


Some other comments Commerce Secretary Locke has made which give hope that, with help from the US, there could be an end in sight to the rolling blackouts in Indonesia...


US Commerce Secretary: Growing Market For Clean Energy in Indonesia

WASHINGTON (MNI) - President Barack Obama's takes off next week on his slightly delayed three-nation South Pacific tour, which includes stops in Indonesia and Australia where he will push for more trade opportunities for U.S. firms. Commerce Secretary Gary Locke said Wednesday there is a growing opportunity for U.S companies to compete to fulfill Indonesia's "need for cleaner and affordable sources of energy."

"There are regional neighborslike China or India that are racing with us to meet Indonesia's and the world's demand for renewable energy, a demand that's expected to increase 50% by the year 2030," Locke said at an event hosted by centrist D.C. think tank, Center for Strategic and International Studies.

=snip=

"Ensuring that American companies play a lead role in this energy transformation is a priority for President Obama and his entire administration," Locke said, adding that the Indonesian government expects a 56% increase in overall energy investment in the next four years.

=snip=

"As its population swells, Indonesia's energy needs are going to skyrocket. And American companies can help Indonesia meet this energy demand and energy challenge," Locke said. While Indonesia has plenty of its own geothermal resources, Locke said there is "a great potential" for the U.S. to export other forms of clean energy since Indonesian legislation requires only 10% of its clean energy to come from sources other than geothermal.

Full article: http://imarketnews.com/node/10440

These are worth a read too:

http://content.usatoday.com/communities/theoval/post/2010/03/obama-boosting-exports-essential-to-economic-recovery/1">Obama: Boosting exports essential to economic recovery

http://blogs.abcnews.com/politicalpunch/2010/03/obama-calls-for-us-to-up-our-game-on-exports.html">Obama Calls for US to 'Up Our Game' on Exports

I am actually looking forward to seeing what the "blueprint for cooperation on a whole host of issues" will consist of. There is still a lack of competition regarding provision of basic services in Indonesia (energy being the main one)which makes it a difficult place to work and live in (regular rolling blackouts, for example).


With regards to madrschod's comments, I'll wait to see how he explains them.

On reflection though, maybe I should have added "It seems as if" at the start of "the points the poster brought up were from the mindless "Obama is the same as Busch. The USA is still run by NeoCons & the MIC and is only interested in selling death and controlling 3rd world countries" paradigm which is unfortunately all too prevalent on DU these days."

[Mithreal]

12. Locke is my former governor. I don't trust everything I read or Locke entirely either.

I'll look forward to reading and hearing more about the "fair" aspects of any of these new agreements.

And you're right, perspective of the reader really makes a difference.

I receive the newsletter from School of Americas Watch. In the most recent one, there was an article that discussed Obama's support for a Free Trade Agreement with Columbia in exchange for US access to 7 military bases in Columbia.

"When funding for the SOA was threatened, the Department of Defense renamed it WHINSEC. The agreement on bases represents one more example of sleight-of-hand: As Congress loses faith in Plan Colombia after investing more than six billion dollars, the DOD taps the military budget to keep the failed policies going with even less Congressional oversight.

The Obama Administration's decision to extend US military muscle to an extent previously unknown threatens to destabilize the entire region. Yes, South American countries have had their border skirmishes and brief armed conflicts, but American bases create a scenario for what could potentially be a major war on the continent. At the same time, the US presence will lead Colombia's neighbors to respond to this anxiety by buying more weapons and raising more national armies. Colombia, Venezuela, Brazil, Ecuador, and Peru will spend on their militaries the money that could and should go to improving the quality of life for all their citizens.

The agreement represents more of the inevitable failure that comes from policies that rely on the military paradigm. In Colombia, as in Afghanistan, military might has failed and is destined to fail. In neither country can the military put a dent in drug trafficking. In both countries, a weak central government has little or no presence--except for military presence--in much of the country and fails to provide even basic services. Military action inspires insurgency and resistance, while warlords and corrupt government officials continue to profit from war."

http://www.soaw.org/presente/index.php?option=com_content&task=view&id=270&Itemid=74

I get it that we are coming at these agreements from different perspectives. I am especially interested in analysis that comes from the perspective of the effects on average Americans but will certainly be open to reading other.

[HeresyLives]

2. The more trade the better.

And nowadays whole new markets have opened up wanting export goods.

[Mithreal]

5. Free Trade agreements, can't have enough of em.

The United States has free trade agreements (FTAs) in effect with 17 countries.
http://www.ustr.gov/trade-agreements

Proposed free trade agreements - source wikipedia, would prefer another
* Free Trade Area of the Americas (FTAA; incl. all countries on the Western Hemisphere)
* Middle East Free Trade Area (US-MEFTA; incl. most countries in the Middle East)
* Flag of the United StatesFlag of Europe Transatlantic Free Trade Area (TAFTA; European Union)
* Thailand: United States-Thailand Free Trade Agreement (on hold since the 2006 Thai coup d'état)
* New Zealand: US-New Zealand Free Trade Agreement<1>
* Ghana: US-Ghana Free Trade Agreement
* Indonesia: US-Indonesia Free Trade Agreement
* Kenya: US-Kenya Free Trade Agreement
* Kuwait: US-Kuwait Free Trade Agreement (Expert-level trade talks held in February 2006)
* Malaysia: US-Malaysia Free Trade Agreement (next meeting on January 14, 2008 in Kuala Lumpur)
* Mauritius: US-Mauritius Free Trade Agreement
* Mozambique: US-Mozambique Free Trade Agreement
* Taiwan: US-Taiwan Free Trade Agreement
* United Arab Emirates: US-United Arab Emirates Free Trade Agreement (5th round of talks are yet to be scheduled)
* US-Southern African Customs Union Free Trade Agreement (US-SAUC; incl. South Africa, Botswana, Lesotho, Swaziland, and Namibia; on hold since 2006 due to US demands on intellectual property rights, government procurement rights and investment)
* Ecuador: US-Ecuador Free Trade Agreement
* Qatar: US-Qatar Free Trade Agreement (on hold since 2006)

http://en.wikipedia.org/wiki/United_States_free_trade_agreements

[AdHocSolver]

8. Free Trade agreements are designed to prevent the US from imposing import quotas or tariffs...

...on goods imported from low-wage countries.

There is no reason to expect those countries to import similar kinds of items from the US because they can manufacture in their own countries more cheaply almost any product that they might buy from us.

So-called "Free Trade" agreements are corporate sponsored agreements to ensure profits by means of cheap labor.

Any American who thinks the U.S. is better off because of "Free Trade" is a fool.

[Mithreal]

9. Agreed.

[Turborama]

11. Please show where it states Obama is going to Indonesia to sign "Free Trade Agreements" n/t

[Mithreal]

13. Not sign but there is discussion on page 2 of your article.

It's downplayed significantly. That's why I looked elsewhere to see what others were saying. But anyway, a few relevant paragraphs from your article, page 2.

But Indonesia has a long way to go before it is ready to join a proposed regional free trade agreement with the United States, said Mark Orgill, manager for Indonesia at the U.S.-ASEAN Business Council.

A much less ambitious trade deal between ASEAN and China already has raised concerns among Indonesia's manufacturers, Orgill said.

The United States began talks this week on the proposed Transpacific Partnership pact with Australia, Chile, Singapore, New Zealand, Peru, Vietnam and Brunei. Two other ASEAN countries, Malaysia and Thailand, have expressed interest in joining the talks.

[Turborama]

14. I was going to quote that 1st one

To point out the opposite, lol.

"Indonesia has a long way to go before it is ready to join a proposed regional free trade agreement with the United States"

-

I was just trying to find more details on what he was alluding to in this oddly short quote, as well, but couldn't find a longer statement. It reads like an article headline in and of itself:

"Indonesia fights battles at home" over moves to open its market, Orgill said.

[Mithreal]

15. It's funny, isn't it?

I just take that as some sort of a disclaimer especially since it is a sort of weak statement, doesn't really say anything substantive, like what's a "long way to go" even mean? Maybe Indonesia isn't ready, but there was no indication that the US wouldn't prefer if that weren't true. Where is the national debate in the US over Free Trade agreements? Seems absent.

Anyway, good talking with ya, sleep soon.

:hi:

[Turborama]

20. Looks like we have to wait until June to find out what's actually going to be signed

Obama postpones Asia trip to focus on health care

The Associated Press , Washington | Fri, 03/19/2010 7:25 AM | World

President Barack Obama has postponed his trip to Asia until June so he can stay in Washington for a possible Sunday vote on his health care overhaul.

White House spokesman Robert Gibbs said Thursday the president is disappointed and regrets having to delay his visits to Indonesia and Australia but has told the leaders of those nations that health care is a crucial priority.

"The president believes right now, the place for him to be is in Washington seeing this through," Gibbs said.

Obama had already delayed the trip to Indonesia and Australia, pushing back a Thursday departure until Sunday so he could help Democrats in Congress rally last-minute votes for the plan.

Continues: http://www.thejakartapost.com/news/2010/03/19/obama-postpones-asia-trip-focus-health-care.html

Good talking to you, too. Maybe we can pick this up again when the visit actually happens... :hi:

[Mithreal]

26. Alrighty, yep, I heard that too and it caught my attention.

:hi:

[ConcernedCanuk]

16. Well, they got the magic attraction - OIL

.
.
.

Indonesia back on the map of Shell’s investment portfolio

The Jakarta Post , London | Thu, 03/18/2010 10:40 AM | Business

Royal Dutch Shell’s Chief Executive 0fficer Peter Voser said Indonesia is now a target for his company’s investment portfolio in both the upstream and downstream hydrocarbon sectors.

“We have been in talks with state oil company Pertamina and the government, offering them our
technology and experiences to develop energy projects such as floating LNG plant,” Voser told
The Jakarta Post on Tuesday in London.

He acknowledged though that the US$292-billion Anglo-Dutch giant had been absent from Indonesia quite sometime despite its long history since its founding (in North Sumatra) more than 100
years ago.

The origins of the oil industry in Indonesia and of what has now become the world’s largest oil
company are closely connected because it was the discovery of commercial quantities of crude oil in Pangkalan Brandan in 1890 that led directly to the formation of what is now known as the Royal Dutch Shell Group.

oh yeah

there's alot more

When the oil runs out,

and it will

The USA with all it's weaponry around the globe is well poised to take whatever resources it feels it needs, be it wood, water, whatever.

And I'm living too close for comfort . .

(sigh)

[Turborama]

19. How is that article linked to Obama visiting Indonesia/America going to war over "wood & water"?

For a start, Shell is Dutch and this article is more about liquid natural gas than oil. You're conflating a story about Shell (a company that started in Indonesia during Holland's colonization and has remained ever since) refocusing on Indonesia and Obama's future visit (whenever that may be now) to make the conclusion that "The USA with all it's weaponry around the globe is well poised to take whatever resources it feels it needs, be it wood, water, whatever." This is what's known as http://encyclopediadramatica.com/Circular_logic">circular logic.

Meanwhile, GE are interested in the geothermal potentials in Indonesia...

GE Tells Obama ‘Sell Hard’ in Indonesia, With China in Pursuit

By Daniel Ten Kate and Stuart Biggs

March 18 (Bloomberg) -- General Electric Co. Chief Executive Jeffrey Immelt wants Barack Obama to “sell hard” in Indonesia as he extols U.S. expertise in industries such as clean energy. He’ll have to work fast -- Premier Wen Jiabao will make China’s sales pitch in Jakarta next month.

President Obama’s trip to his childhood home, already delayed once and currently scheduled for March 23-25, is key to a pledge to boost U.S. exports and “lead the global economy” in providing alternatives to fossil fuels. Southeast Asia’s biggest economy, which Immelt included last week among nations that may provide the growth “surprise” of the next decade, has the world’s largest geothermal reserves.

Winning orders for plants that harness the earth’s heat to produce electricity is a test of the U.S.’s ability to compete with China for exports in a region where its investments lag the European Union and Japan. China profited from Indonesia’s earlier energy needs, supplying coal-fired plants in the last decade, said Ravi Krishnaswamy, Singapore-based Asia-Pacific director for Frost & Sullivan, an energy consultancy.

“It’s sort of scary because China has moved so quickly and they’ve been so efficient in developing their industry,” said Peter du Pont, who runs an Asia clean-energy program in Bangkok funded by the U.S. Agency for International Development. The U.S. risks “losing whole markets if they’re not active,” he said.

More: http://www.businessweek.com/news/2010-03-17/ge-tells-obama-sell-hard-in-indonesia-with-china-in-pursuit.html

Also posted here: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=115x236938

[MaineDem]

17. And now he's not going

At least not now. He's staying in DC for the HC bill.

[The abyss]

18. What would they trade for?

The American middle class is damn near dead. Well – I guess it probably is dead, just no one wants to announce the funeral service.

Check out the dry index shipments. Take a long hard look at the warehouse and dock facilities on the east & west coasts.

[Turborama]

22. Which "they" are you referring to?

Also, please could you add some links to give a better idea on what you're referring to in the last 2 sentences?

[The abyss]

23. “They”

That would be the “they” in the original post – Indonesia.

What would the Indonesian nations be seeking from the US in a trade agreement? Or in other words – Why would “they” even want a trade agreement?

“dry index” Look at the Baltic Exchange Dry Index (BDI)
http://en.wikipedia.org/wiki/Baltic_Dry_Index

There are numerous stories regarding ship traffic and dock/warehouse traffic, take a look around.

What would the Indonesian nations be seeking from the US in a trade agreement?

“The power is off on the mainland now in case you haven't heard, and all the shopping malls are closed!”

[Turborama]

24. Well, you state "they" in the subject line and then the 1st sentence is about Americans

So it was a bit confusing.

Your post is still vague. You don't specify which "warehouse and dock facilities on the east & west coasts" you're referring to. Are you talking about Java or the east and west coasts of the US? What does that have to do with anything, anyway? Warehouse and dock facilities can be enlarged and/or increased, if needs be.

"What would the Indonesian nations be seeking from the US in a trade agreement? Or in other words – Why would “they” even want a trade agreement?"

See posts 10 & 19 (the Business Week article deserves to be read in full) for an example of the kind of investments which could be mutually beneficial for the US and Indonesia.

Also, here's some of the latest stats I could find...

Indonesia’s Top Imports from America

Food products are directly or indirectly related to 4 of the top 10 export product categories for US shipments to Indonesia. This should not be surprising given Indonesia’s huge population.

Soybeans … US$626 million, up 46.2% from 2007 (11.1% of US exports to Indonesia)
Civilian aircraft … $534.1 million, up 44% (9.5%)
Raw cotton … $454.6 million, up 33.4% (8.1%)
Wheat … $364 million, up 53.8% (6.4%)
Other chemicals … $244 million, up 57.9% (4.3%)
Dairy products and eggs … $200.1 million, up 63.3% (3.6%)
Steelmaking materials … $178.7 million, up 124.4% (3.2%)
Organic chemicals … $148.5 million, up 74.4% (2.6%)
Plastic materials … $142.6 million, up 22.4% (2.5%)
Animal feeds … $133.9 million, up 65.9% (2.4%).

Fastest-Growing Indonesian Imports from the U.S.

Led by a remarkable 1,826% spike in U.S. meat and poultry exports, the other 9 fastest-growing American exports to Indonesia had triple-digit percentage gains of at least 124.4% in 2008.

Meat and poultry … US$9.8 million, up 1,826% from 2007
Materials handling equipment … $118.1 million, up 558.7%
Non-farm tractors and parts … $7.5 million, up 336.3%
Specialized mining equipment … $23.4 million, up 294.3%
Buses, trucks and special purpose vehicles … $12.6 million, up 293.7%
Railway transportation equipment … $12.2 million, up 293.5%
Copper … $16.1 million, up 198.7%
Excavating machinery … $108.2 million, up 161.2%
Generators and accessories … $32.3 million, up 132.1%
Steelmaking materials … $178.7 million, up 124.4%.


Read more at Suite101: http://import-export.suite101.com/article.cfm/indonesias_top_imports_exports_2008#ixzz0iae6jurL

BTW Just in case it wasn't a typo, Indonesia is one nation.

[The abyss]

25. Nice stats for 2008

Meat & poultry I knew were up that year.

The machinery surprised me in general.

In a couple of years we can see where 2010 winds up.

[Blue_Tires]

21. this is the part where i mention yet again

about normalizing trade relations with Cuba...what could it possibly hurt to try it??