Mustaqim Adamrah, The Jakarta Post, Jakarta<\/p>\n
Bowing to pressure from textile producers, the Industry Ministry has agreed to reassess the costs and benefits of the China-ASEAN free trade agreement, and may even propose a postponement.<\/p>\n
Textile producers argue the full implementation of the agreement next January, which would see an end to all import tariffs, would amplify the already unbearable pressure from the influx of Chinese goods.<\/p>\n
The Indonesian Textile Producers Association (API) has admitted local producers are not ready to compete against their Chinese counterparts, should the FTA\u2019s implementation go ahead as scheduled.<\/p>\n
Chinese producers, the API says, are greatly leveraged by huge government subsidies, creating unfair global business competition.<\/p>\n
Recognizing the reality, the Industry Ministry has vowed to launch a joint study with corresponding bodies in other ASEAN countries on the impact of the FTA specifically on the domestic textile industry.<\/p>\n
\u201cThe requested delay can be carried out,\u201d Ansari Bukhari, the Industry Ministry\u2019s director general for metal, textile, machinery and miscellaneous industries, told The Jakarta Post recently.<\/p>\n
\u201cBut first, we need to study and talk with other ASEAN members.\u201d<\/p>\n
ASEAN comprises of Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand, Burma, Cambodia, Laos and Vietnam.<\/p>\n
API deputy chairman Ade Sudrajat suggested that prior to opening up its markets to China, ASEAN countries should try to improve trade within the region.<\/p>\n
\u201cTextile and garment trade between ASEAN members is still small, accounting for only 7 percent of the US$29.6 billion recorded in 2008 for total textile and garment exports from the region,\u201d he said.<\/p>\n
\u201cWe need to boost this to at least 20 percent before moving forward with an FTA. Otherwise, it will be us losing without competing.\u201d<\/p>\n
He said he had spoken with ASEAN Federation of Textile Industries (Aftex) secretary-general Andrew Hong about concerns over the FTA implementation.<\/p>\n
Hong, Ade went on, had promised to speak to other players in ASEAN about the matter. Arryanto Sagala, the Industry Ministry\u2019s director for textile industries, along with Harbrinderjit Singh Dillon, executive director of the NGO Partnership Governance Reform, agreed that direct competition with China would be useless at this juncture.<\/p>\n
\u201cIt\u2019s hard for us to compete in many aspects,\u201d Arryanto said.<\/p>\n
\u201cFor instance, China has resources to produce cotton thread, while Indonesia has to import cotton.\u201d<\/p>\n
Other advantages that China has include longer working hours and lower operational costs, due to massive production capacity, he said.<\/p>\n
\u201cIndonesia and China are not comparable,\u201d he said.<\/p>\n
Dillon said all FTAs, including the ASEAN - China FTA, negotiated by \u201c[Trade Minister] Mari [Elka Pangestu] are mistakes\u201d.<\/p>\n
\u201cAll free trade agreements must be delayed for another three years, when the economy recovers, as export markets are not reliable right now,\u201d he said.<\/p>\n
\u201cThe Indonesian government must lobby China and other ASEAN governments to delay the FTA. Don\u2019t make agreements that will put our development in danger.\u201d<\/p>\n
Neither Mari nor Diah Maulida, the Trade Ministry\u2019s director general for international cooperation, responded to the Post\u2019s inquiries.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/free-trade-delay-with-china-sought-ministry-1247530482", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }