Sat, 06 Feb 2010

Jakarta (ANTARA News) - The Association of Indonesian Exporters (GINSI) has reminded the government to keep imposing import duties on various Chinese products, although the ASEAN-China Free Trade Area (ACFTA) had taken effects of January 1, 2010.

`The government needs to keep imposing import duties on imported Chinese products especially with a view to protecting similar local products," general chairman of GINSI Amirudin Saud said here Friday morning when asked about the latest development of implementation of ACFTA after entering its second month.

He asked the government to take attention to the fact that the flooding of Chinese products on the domestic market has been posing a serious threat to the textile, garment, footwear and electronic industries in the country, many of which had started thinking of resorting to mass employment terminations.

"The nil percent import duties must be applied with regard to imported Chinese products," said Amirudin who had been leading GINSI for almost 20 years now.

He said the only thing which had been imposed on imported Chinese products had been value added tax (VAT).

He said that following the introduction of ACFTA, the consumers in Indonesia would be able to lay their hands on imported goods at lower prices.

"But the government needs to remember that it has the obligation to protect the domestic industry," said Amirudin, who is also general chairman of the Indonesian Federation of Exporting Companies (GPEI).

He said he did not understand while ACFTA had been signed by the then President Megawati Soekarnoputri, up till now the government has never tried to take measures to protect the domestic industry.