Thu, 14 Apr 2011

TEMPO Interactive, Jakarta:Indonesia will ask for China’s commitment to balance inter-regional trade. The government does not want any industry to decline as a result of the China ASEAN Free Trade Agreement (CAFTA).

The Coordinating Minister for the Economy, Hatta Rajasa, said there were three points to observe in the free trade agreement with China. First, the Indonesian government does not want an increasing trade deficit. “We want China’s commitment to balance trade,” he said yesterday.

Secondly, said Hatta, if there was injury towards the local industries, the government will discuss it immediately with China. “We must anticipate that before it occurs.”

Third, the government will continue to emphasizing on the commitment for trade balance in the South East Asian region, including China. “We must have a spirit of balance. If there is a deficit, we will talk about it.”

Last year, following the implementation of CAFTA, Indonesia suffered a trade deficit. Exports to China was US$ 49.2 billion, but import sfrom China was US$ 52 billion, an increased of 45.9 percent.

The worst hit domestic products were textiles, foot wear, electronics, wood and rattan furniture, child toys, machinery, steel and iron, food and beverages and cosmetics.