INDONESIA PREPARES STEPS TO DEAL WITH ACFTA

Jakarta, Jan 17 (ANTARA) - Indonesia has prepared at least ten steps to deal with the implementation of the Asean-China Free Trade Agreement (ACFTA) as of January this year.

The steps were made with reference to the World Trade Organization (WTO) regulations, industry ministry said in a press statement received here on Saturday.

The first step is evaluating and revising all the SNI (Indonesia National Standard) standards that have expired and making the standards compulsory following notification to the WTO.

The second step is making the Anti-Dumping Committee (KADI) functions effective to deal with every case of alleged dumping practice and extension of subsidy directly by trade partners.

The third step is making the Indonesia Trade Security Committee (KPPI) functions effective to overcome hike in imported products in the domestic market.

The Indonesian government will also increase lobbying to secure the country's exports from among others dumping and subsidy threats from trade partners.

The implementation of the Presidential Instruction Number 5 of 2008 on economic focus will also be accelerated.

Other steps include harmonizing import duties for tariff lines used in general to increase investment and bargaining power, making the tasks and functions of customs officials more effective including the possibility of establishing red lanes to check products considered vulnarable to smuggling activities.

The eight step is limiting/ banning exports of raw materials with regard to meeting domestic energy demand for industries to boost processing indutrial growth at upstream levels and at the same time strengthen local industries' bargaining power.

The Indonesian government will also maintain its regulation on income tax facility for capital investment in certain fields or regions.

It will also maintain the trade ministry's regulation Number 56 of 2008 on limiting entry ports for five products namely footwear, electronic, children's toys, garments, food and beverages.