ID :
95591
Fri, 12/18/2009 - 11:31
Auther :
Shortlink :
https://www.oananews.org//node/95591
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APINDO: ACFTA POSTPONEMENT MAXIMALLY FOR THREE YEARS
Jakarta, Dec 17 (ANTARA) - The Association of Indonesian Businessmen (Apindo) has urged for the government to seek the postponement of the implementation of the Asean-China Free Trade Agreement for several sectors although its credibility will drop.
Its general chairman, Sofjan Wanandi, said here on Thursday Apindo called for the postponement for several sectors for maximally three years.
"With the move the government would save the industry particularly sectors that employ a lot of workers," he said at a press conference on the economic prospects in 2010.
Sofjan said under current conditions with Chinese products increasingly flooding the postponement was urgent.
"Indonesia indeed has to be consistent with its participation in the ACFTA but the fact is several associations have given up," he said.
The ACFTA will be effective as of January 1, 2010 but the country`s businesses will not be fully capable of meeting it.
The office of the coordinating minister for the economy stated earlier that of around 2,500 business sectors in Indonesia 303 are not ready to participate in the Free Trade Agreement.
The sectors include textile, steel, electronics, cosmetic, tires, furniture, cacao processing, medical equipment, aluminium, petro-chemical downstream, glass, shoe, tool and automotive industries.
Sofjan said Apindo had asked for a postponement of maximally three years for all infrastructure and government policy to be ready to support the sectors.
"It will not be effective fully for all sectors. If a sector is ready one year afterwards that will be good," he said.
The call for the postponement has been voiced among others by the Association of Medicinal Herbs Producers and the Federation of the Association of Electronic Industrialists (Gabel).
The chairperson of industry and trade of the Association of Medicinal Herbs Producers, Putri K Wardani, said her side was now facing a big trouble facing illegal herbs and cosmetic imports.
"Cosmetic goods from China continue to rise in the market despite the fact that their quality is questionable," she said.
Even now before the free trade agreement is implemented products from China have already controlled up to 50 percent of the market share.
The textile and garment sectors have earlier been flooded by foregin products, she added.
Sofjan said Apindo had met with several associations and agreed to urge the government to ask for a postponement.
He said according to a clause in the ACFTA a country could ask for a postponement if the agreement could indeed harm its industries.
The chairman of the Association of Indonesian Shoe Makers (Aprindo), Anton Supit, meanwhile said the government had to be realistic that under certain conditions it would indeed be difficult to challenge competitors which are indeed stronger.
He said during the postponment period both businesses and the government had to carry out their tasks which had so far been done not maximally.
"The government must dare cutting regulations which are negative for industries and bureaucracy must also be cut and transparent," he said.
Citing an example of how inefficient the bureaucracy has been Anton referred to the case of seeking a permit for exporting ornamental fish which takes up to 17 days while the commodity is vurnarable to time.
Sofjan said Apindo would soon ask for confirmation with regard to the postponement from the government as well as give inputs and suggest measures the government and businesses could do.
One of the measures to do is increasing efficiency, infrastructure facilities such as electricity supply, readiness of banks to give cheap financing as well as export incentives.
"If outages continue to happen how industries could maintain continuity of production. This is basic," he said.
He said in China the government played a big role in assuring the availability of infrastructure including providing interest subsidy to make its manufacturing industries more efficient and capable of producing cheap products.***2***
Its general chairman, Sofjan Wanandi, said here on Thursday Apindo called for the postponement for several sectors for maximally three years.
"With the move the government would save the industry particularly sectors that employ a lot of workers," he said at a press conference on the economic prospects in 2010.
Sofjan said under current conditions with Chinese products increasingly flooding the postponement was urgent.
"Indonesia indeed has to be consistent with its participation in the ACFTA but the fact is several associations have given up," he said.
The ACFTA will be effective as of January 1, 2010 but the country`s businesses will not be fully capable of meeting it.
The office of the coordinating minister for the economy stated earlier that of around 2,500 business sectors in Indonesia 303 are not ready to participate in the Free Trade Agreement.
The sectors include textile, steel, electronics, cosmetic, tires, furniture, cacao processing, medical equipment, aluminium, petro-chemical downstream, glass, shoe, tool and automotive industries.
Sofjan said Apindo had asked for a postponement of maximally three years for all infrastructure and government policy to be ready to support the sectors.
"It will not be effective fully for all sectors. If a sector is ready one year afterwards that will be good," he said.
The call for the postponement has been voiced among others by the Association of Medicinal Herbs Producers and the Federation of the Association of Electronic Industrialists (Gabel).
The chairperson of industry and trade of the Association of Medicinal Herbs Producers, Putri K Wardani, said her side was now facing a big trouble facing illegal herbs and cosmetic imports.
"Cosmetic goods from China continue to rise in the market despite the fact that their quality is questionable," she said.
Even now before the free trade agreement is implemented products from China have already controlled up to 50 percent of the market share.
The textile and garment sectors have earlier been flooded by foregin products, she added.
Sofjan said Apindo had met with several associations and agreed to urge the government to ask for a postponement.
He said according to a clause in the ACFTA a country could ask for a postponement if the agreement could indeed harm its industries.
The chairman of the Association of Indonesian Shoe Makers (Aprindo), Anton Supit, meanwhile said the government had to be realistic that under certain conditions it would indeed be difficult to challenge competitors which are indeed stronger.
He said during the postponment period both businesses and the government had to carry out their tasks which had so far been done not maximally.
"The government must dare cutting regulations which are negative for industries and bureaucracy must also be cut and transparent," he said.
Citing an example of how inefficient the bureaucracy has been Anton referred to the case of seeking a permit for exporting ornamental fish which takes up to 17 days while the commodity is vurnarable to time.
Sofjan said Apindo would soon ask for confirmation with regard to the postponement from the government as well as give inputs and suggest measures the government and businesses could do.
One of the measures to do is increasing efficiency, infrastructure facilities such as electricity supply, readiness of banks to give cheap financing as well as export incentives.
"If outages continue to happen how industries could maintain continuity of production. This is basic," he said.
He said in China the government played a big role in assuring the availability of infrastructure including providing interest subsidy to make its manufacturing industries more efficient and capable of producing cheap products.***2***
