Indonesia's US boycott concerns

Indonesia's US boycott concerns

By Rachel Harvey in Indonesia

Protests have been almost daily

Indonesia has been among the strongest Asian critics of the war in Iraq and many of its residents have taken part in street protests against the conflict. But the calls for a boycott of US goods could backfire badly.

The Indonesian government has condemned the conflict in Iraq as a unilateral act of aggression, and there have been almost daily street protests across the country.

Much of the popular anger is focussed on the United States and the things which symbolise America.

Scenes of angry demonstrators venting their fury on the fast food restaurants and coffee shops which, they believe, symbolise the corrosive global influence of the US, have become one of the enduring images of our time.

So perhaps it wasn't surprising that, in the days following the start of the American-led war in Iraq, protesting students in Indonesia marched to the nearest McDonald's, not to satisfy their hunger, but to demand a boycott of American restaurants.

Home grown?

The trouble is McDonalds isn't really American.

The staff are all Indonesian, the vast majority of the customers are Indonesian and the ingredients used to make the food come all the way from - yes - Indonesia.

So boycotting McDonalds is likely to affect local people and local businesses more than the bosses of corporate America.

The fast food fallacy is just one small example of a more general paradox.

The calls from students and some radical Muslim leaders for a boycott of American goods have been loud and persistent.

But what would such a boycott achieve?

Close ties

The US is one of Indonesia's most important trading partners.

The US foreign policy is very unpopular

Textiles and timber are among Indonesia's main non-oil exports and the US is one of the most lucrative markets.

Add to that the fact that American companies are at the forefront of helping Indonesia exploit its rich natural resources and it quickly becomes clear that, in reality, the Indonesian economy is to a large extent dependent on the US.

So a boycott of American goods could backfire badly.

The government and many leading economists know this and have been advising against any course of action which could damage business confidence in Indonesia.

In any case it seems highly unlikely that the boycott call will be heeded.

Even the protestors shouting their condemnation of the US outside McDonalds wear Nike trainers, drink Coca Cola and smoke Marlboro cigarettes.

Indonesian's may not like America's foreign policy but American culture remains popular.

If the war in Iraq drags on things might change, but for now, American goods in Indonesia are still selling well.