Posted by: mel | December 21, 2009

Some Indonesian Industrial Zones May Collapse: China is more prepared than Indonesia

Vivanews | Heri Susanto | 21 December 2009

The government is suggested not to rush in upon joining the ASEAN-China Free Trade Agreement (ACFTA). With minimal preparations, Indonesia will gain more disadvantages than benefits.

The Indonesian Young Entrepreneurs Association (HIPMI) presumes that some of the industry sectors, especially small and medium enterprises (IKM) and special economic zones are facing possible terminations.

“The zones include the ones in Batam, Bintan, Jakarta until Surabaya, HIPMI BPP Head Erwin Aksa says in a press release received by VIVAnews in Jakarta, December 20.

Aksa, who just visited some industry sectors in China said the Chinese government is more prepared to implement the free trade agreement.

He also said the agreement has been planned since 8 to 10 years ago by China while Indonesia only did it in months or even weeks.

That is why China is ready to face the outcome of the ACFTA. Even without the ACFTA, China is ready for a competition. The low prices of goods imported from China that the small-sized enterprise produces prove the country’s readiness. “Without the ACFTA, Chinese products have already been cheap. The ACFTA would make Indonesian products being left by their own people, let alone hoping to get to China,” Aksa said.

HIPMI has a different take on the issue. The association assumes Indonesia’s lack of preparation in facing the ACFTA practices would lead to the end of businesses in several industrial sectors, including the most prestigious Batam, in a year.

He also reminded that China is ready to supply whatever goods sought after by the Indonesian consumers in the future. “China has prepared everything from worldly goods to afterlife needs, including supporting manufacture. They only need to boost their production while we’re still struggling to lower credit interest rates,” Aksa said.

Translated by: Nataya Ermanti

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