Indonesia Not Ready for ASEAN-China Free Trade
TEMPO Interactive, Jakarta: Indonesia is considered to be not ready to face the effects of excise fee removal as part of the ASEAN and China free trade agreement in 2010.
Deputy of the Indonesian Chamber of Commerce and Industry (Kadin) for Domestic Trade, Benny Sutrisno, said that during the last four years, the trade balance between Indonesia and China had kept declining.
“The export growth is not worth the import growth,” he said in a discussion of ASEAN-China Free Trade Agreement (FTA) in Jakarta, yesterday (29/7).
The trade balance of Indonesia and China in 2004 showed a surplus of US$5 million. But this continued declining to a deficit of US$3.61 billion in 2008.
The trade in non-oil and gas sectors also showed a deficit of US$7.16 billion following a large surplus of US$79 million.
“There will be large imports from China after the excise fee is reduced due to the FTA,” said Benny.
The import hike will affect domestic manufacturing industries. “The industries will certainly be hit if the fee removed,” he said.
KADIN has asked the government to anticipate this by applying the national standard for local products circulated in domestic market.
Benny said that these standards would also protect consumers and industries from Chinese products. “The government should be able to repress imported products,” he said.
VENNIE MELYANI
Deputy of the Indonesian Chamber of Commerce and Industry (Kadin) for Domestic Trade, Benny Sutrisno, said that during the last four years, the trade balance between Indonesia and China had kept declining.
“The export growth is not worth the import growth,” he said in a discussion of ASEAN-China Free Trade Agreement (FTA) in Jakarta, yesterday (29/7).
The trade balance of Indonesia and China in 2004 showed a surplus of US$5 million. But this continued declining to a deficit of US$3.61 billion in 2008.
The trade in non-oil and gas sectors also showed a deficit of US$7.16 billion following a large surplus of US$79 million.
“There will be large imports from China after the excise fee is reduced due to the FTA,” said Benny.
The import hike will affect domestic manufacturing industries. “The industries will certainly be hit if the fee removed,” he said.
KADIN has asked the government to anticipate this by applying the national standard for local products circulated in domestic market.
Benny said that these standards would also protect consumers and industries from Chinese products. “The government should be able to repress imported products,” he said.
VENNIE MELYANI