China seeks to export more products to RI<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
China, in a bid to narrow its trade deficit with Indonesia,
\nplans to export more of its products here, a move that could
\nthreaten local manufacturers.<\/p>\n
A senior trade official at the Chinese Embassy in Jakarta, Tan
\nWeiwen, said the country's export volume to Indonesia was
\nexpected to increase to about US$3.1 billion this year from $2.8
\nbillion last year.<\/p>\n
\"We are optimistic that we can increase our exports since our
\nproducts have long been accepted by the Indonesian market, due to
\ntheir low prices and fairly good quality,\" Tan told The Jakarta
\nPost last week.<\/p>\n
He said China hoped to export more of its chemical products
\nand machinery to Indonesia, which have very competitive prices.<\/p>\n
\"This (increase in) exports should narrow our trade deficit
\n(with Indonesia),\" he said.<\/p>\n
The Chinese official said that over the past 10 years, China
\nhad suffered trade deficits with Indonesia.<\/p>\n
According to data published by the People's Republic of
\nChina's Ministry of Trade and Economic Cooperation, Indonesia's
\nexports to China in 2001 totaled $3.88 billion, while its imports
\nfrom the country totaled $2.83 billion.<\/p>\n
Tan said China expected to be able to balance the trade figure
\nwith Indonesia within the next three years.<\/p>\n
Indonesia's Central Bureau of Statistics (BPS) ranks China as
\nIndonesia's sixth largest trading partner.<\/p>\n
Chinese-made products popular among Indonesians include
\nelectronic goods, household appliances, textiles, footwear and
\nmotorcycles.<\/p>\n
The head of the import division at BPS, Irlan Indrocahyo,
\npredicted that Chinese imports to Indonesia would increase,
\nbecause that country's products were affordable and popular among
\nmiddle to low-income families here whose purchasing power has
\nbeen weakened by the ongoing economic difficulties.<\/p>\n
\"Chinese-made products are for the most part purchased by low
\nand middle-income people. This group tends to seek less expensive
\nproducts instead of quality products,\" said Irlan.<\/p>\n
A flood of inexpensive Chinese-made products here has raised
\nsuspicions that China has been dumping its products on the
\nIndonesian market.<\/p>\n
But Tan quickly dismissed such suggestions, saying Chinese
\nmanufacturers were able to sell their products at competitive
\nprices because of lower production costs, resulting from low
\nlabor costs and management fees, low taxes and the availability
\nof raw materials in its domestic market.<\/p>\n
\"Production costs in China are very low. Not just labor, the
\nsalary of the management is also very low. As an example, a chief
\nexecutive officer in Indonesia earns about $5,000 (per month),
\nbut in China they are very lucky just to earn $1,000,\" Tan said.<\/p>\n
He added that most companies in China still used a payment
\nsystem that was based on productivity, meaning workers were paid
\naccording to how many products they made in a day.<\/p>\n
Anton Supit, an executive at the newly established Crisis
\nCenter and also the chairman of the Indonesian Footwear
\nAssociation, said cheap Chinese products were a threat to
\nIndonesia's manufacturing industry.<\/p>\n
\"Although the products enter the country legally, their prices
\nare very low,\" he said, adding that if the products were smuggled
\nin the prices would be even lower.<\/p>\n
Local manufacturers have complained that the rampant smuggling
\nof products into the domestic market is seriously damaging their
\nbusinesses.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/china-seeks-to-export-more-products-to-ri-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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