Fri, 18 Dec 2009
Jakarta (ANTARA News) - A business figure said Indonesia`s manufacturing products are not ready to compete for access to China market.

"We have no strong basis for entering the China market. I think we are not ready to meet the Asean-China Free Trade Agreement," Sofjan Wanandi said at a press conference on economic prospects at the office of the Association of Indonesian Businessmen (Apindo) here on Thursday.

Sofjan who is the general chairman of Apindo said Indonesia would meet the ACFTA implementation like without a capital.

"Nothing it can rely on except natural resource-based products such as gas, coal and other mining products," he said.

The manufacturing sector is powerless because it is inefficient so that the price of its products cannot compete with that of China in the Chinese as well as local markets.

In China, he said, the government played a big role in promoting the growth of the manufacturing sector with an integrated policy, good business climate, energy supply guarantee and low lending rates.

"So the Chinese finished goods anywhere in the world are cheap and competitive," he said.

Sofjan said the ACFTA should actually benefit Indonesia because the country had an opportunity to target the Chinese market of 1.3 billion population.

The fact, however, is that even the Chinese products that flooded the country, reaching up to 50 percent for certain products, he said.

"The Indonesian market has become one of the destinations of goods from China as well as Thailand, Vietnam and some other Asean countries," he said.

In view of that he said the Indonesian government could now no longer be able to ignore its homework such as abolishing various obstacles causing high economic cost.

"The government must expedite the provision of more electricity infrastructure, cheap interest subsidy, export incentives and curb labor upheavals," he said.

"If electricity supply is difficult to assure (and) power outages often occur how industries could assure continuity of production. This is basic," he said.

To deal with the situation he said besides postponing the implementation of the ACFTA for certain sectors the government could also impose a non-tariff barrier such as the implementation of the Indonesia National Standard (SNI).

"The government could also prepare an anti-dumping team," he said.(*)



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