RI steadfast on protecting sensitive products

RI steadfast on protecting sensitive products

By Meidyatama Suryodiningrat

BANGKOK (JP): Indonesia remained steadfast yesterday in its
position on the withdrawal of a number of products from the list
of immediate tariff reductions, despite strong criticisms from
fellow members of the Association of Southeast Asian Nations
(ASEAN).

"Once you have produced a sensitive list, we do not expect
people to increase the items on the list," Krirk-Krai Jirapaet,
the director general for foreign economic affairs of Thailand's
Economic Ministry said yesterday.

Indonesia faced strong opposition during the meeting of ASEAN
senior economic officials on its proposal to move 15 products
from the Temporary Exclusion List (TEL) to the Sensitive list
under ASEAN's Common Effective Preferential Tariff (CEPT) scheme.

The CEPT scheme comprises several lists with the ultimate aim
of creating an ASEAN Free Trade Area (AFTA) by the year 2003.

Items listed under the TEL have a 5-year extension, as
compared with products on the Inclusion List, whose tariff
reductions fall at a faster pace. By moving the 15 items from the
TEL to the Sensitive List, Indonesia will have an unspecified
tariff-reduction timeframe for the products.

Thailand

"The list must be improved for the better not for the worst,"
Jirapaet remarked.

Thailand is among the ASEAN members strongly opposing
Indonesia's proposal. According to delegates, a majority of ASEAN
members opposed the move.

Jirapaet remarked that, if countries continue to move items to
the Sensitive List, they will not give a good impression on
ASEAN's commitment on AFTA.

"When are you going to finish the AFTA process?" he said.

ASEAN, which was formed in 1967, now consists of Brunei,
Indonesia, Malaysia, the Philippines, Singapore, Thailand and
Vietnam.

Yesterday senior officials wrapped up two concurrent meetings
-- one on political issues and the other on economics -- which
were a prelude to the ASEAN ministerial meeting and summit here
next week.

Indonesian economic officials remained tight-lipped, refusing
to answer questions from journalists. However, delegate Bahrum
Harahap, who is an assistant to the coordinating minister for
production and distribution, said that Indonesia would remain
steadfast in achieving its goal.

"The main thing is that we are fighting for the national
interest," Bahrum said.

Bahrum is concurrently leading the Indonesian delegation,
after the sudden departure of Djoko Moelyono, the director
general of foreign trade at the former Indonesian Trade Ministry.
That ministry was merged with the Ministry of Industry to become
the Ministry of Trade and Industry under a cabinet shake-up
announced on Wednesday.

Another Indonesian delegate, who requested anonymity, said
that the Indonesian decision to withdraw the 15 items from the
TEL is due in part to the acceleration of the establishment of
AFTA.

ASEAN recently brought forward the original AFTA deadline from
the year 2008 to 2003.

The delegate said that the new deadline forced Indonesia to
move the 15 items to the Sensitive List.