Posted by: mel | December 19, 2009

Imported Chinese products becoming threat to local industries

ANTARA News | Jakarta | Economic & Business | 19 December 2009

Imported Chinese products which have been flooding Indonesian markets can cause local people-based industries to close down, a retail traders advocacy activist said.

“In the 1970s, Indonesia only imported from China products that could not yet be produced at home, but now all kinds of Chinese products have entered Indonesian markets,” Hermawi M Taslim, director of the Indonesian Advocacy and Retail Consultation Center, said here Saturday.

Citing an example, Hermawi said currently such goods as fruits, spices and toys were imported from China, while the same things were already being produced in Indonesia.

This happened because the imported Chinese products were very cheap, but this could cause local industries slowly to shut down.

He said the Chinese products had penetrated all Indonesian market sectors so that business people in the country had to be creative in order to survive.

Electronic business owner in Jakarta Glodok market showed an example that a lot of computer vendors in the Glodok market and Mangga Dua Jakarta had taken patents for brand names.

“The reality is that trademarks appear only on the packaging, but the components are imported products from China,” he said.

Hermawi urged the government to have a strong political will to protect domestic industries, primarily people-based industries in order to keep people alive in the era of ASEAN-China free markets (ACFTA).

Indonesia should not become victims which is only a market for industrial products from China and other countries.

In fact, Indonesia had the potential to become producers aspecially in energy and human resources (HR).

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