RI ready for full 'implementation of AFTA in 2002'<\/p>\n
JAKARTA (JP): Indonesia is ready for the full implementation
\nof the ASEAN Free Trade Area (AFTA) in 2002 whereby tariffs on
\nimports from within the Association of the Southeast Asian
\n(ASEAN) member countries should be lowered to between zero
\npercent to 5 percent, a senior trade official said here on
\nWednesday.<\/p>\n
Budi Darmadi, a director for regional cooperation at the
\nMinistry of Industry and Trade, said Indonesia has already
\nimplemented 90 percent of the AFTA scheme.<\/p>\n
\"For next year, there would only be 66 product items which are
\nstill subject to more than a 5 percent import tariff,\" he told
\njournalists on the sidelines of a workshop on AFTA's Common
\nEffective Preferential Tariff (CEPT) scheme.<\/p>\n
Indonesia has been well in line with the timetable set under
\nAFTA in which at least 85 percent of the products included in the
\nprogram should have import duties of 5 percent by the year 2000,
\nBudi said, adding that by the end of this year, the 5 percent
\nimport tariff should cover at least 90 percent of them.<\/p>\n
AFTA itself was established to increase trade between member
\ncountries of the Association of Southeast Asian Nations (ASEAN),
\nto attract foreign direct investment, and to create a globally
\ncompetitive production base in the region.<\/p>\n
The director of the Bureau of Trade, Industry, and Services of
\nthe ASEAN Secretariat, Robert R. Teh, said the original deadline
\nfor the implementation of zero percent import duty was 15 years
\nafter its conception in 1993; however, in the ASEAN economic
\nministers meeting in December 1998 in Hanoi, Vietnam, the
\ndeadline was accelerated to 2002.<\/p>\n
The advanced implementation of AFTA to 2002 would only effect
\nthe six original signatories of ASEAN, which are Brunei,
\nIndonesia, Malaysia, the Philippines, Singapore, and Thailand, he
\nsaid.<\/p>\n
The other four countries were to follow, with Vietnam in 2006,
\nLaos and Myanmar in 2008, and Cambodia in 2010, he said.<\/p>\n
Budi said that Indonesia has already imposed import tariffs of
\nbetween zero percent to 5 percent on 6,451 items, or 89.72
\npercent of the 7,190 products included in the AFTA scheme.<\/p>\n
However, he said that Indonesia would lobby for the exclusion
\nof sugar from the program, saying that Indonesian sugar farmers
\nneeded protection to survive.<\/p>\n
\"We are currently lobbying for sugar to be entered into the
\nhighly sensitive list, which in effect would give longer time for
\nthe implementation of zero percent duty,\" Budi said.<\/p>\n
CEPT for products in the highly sensitive list would only be
\nimplemented gradually after 2003, with the period until 2010 for
\nfull implementation, he added.<\/p>\n
Ketut Suarka, senior official of the directorate general, said
\nthat Indonesia has already included rice in the highly sensitive
\nlist, and among other things that are included in the general
\nexclusion list are alcoholic beverages.<\/p>\n
Indonesia was also in negotiation with Malaysia for
\ncompensation due to the exclusion of Malaysia's automobile
\nindustry in the tariff reduction scheme.<\/p>\n
\"For Malaysian automobile imports to Indonesia, we will impose
\nimport duty of about 80 percent, depending on the engine type and
\nthe condition of the imports,\" Budi said.<\/p>\n
Other negotiations for compensation were still ongoing, he
\nsaid, adding that Thailand was also seeking compensation for the
\nloss of profit, he added.<\/p>\n
Calls for delays of the AFTA plan have often been raised by no
\nless than members of the Indonesian Chamber of Commerce and
\nIndustry (Kadin) and the Association of Indonesian Automotive
\nIndustries (Gaikindo).(tnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-ready-for-full-implementation-of-afta-in-2002-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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