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5 January 2010
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Asean-China FTA: Indonesia asks to delay tariff cuts on 228 items

The Indonesian government submitted a proposal to the Asean Council last week to postpone tariff reductions on 228 items under the free trade agreement between the regional grouping and China, reported the Jakarta Post.

“The notification we sent to the Asean Council last week stipulates we want a renegotiation,” Industry Minister Mohamad Suleman Hidayat said.

Hidayat said Indonesia was willing to trade the postponing with something that will benefit China. “Nothing is [done] for free.”

Coordinating Economic Minister Hatta Rajasa said that the formal renegotiations would be held later this year, with the Trade Ministry to be the government’s representative on the deal table.

“We have continuously held informal talks [with our counterparts]. We’ll continue renegotiations, while referring to the protocols of our agreement,” he said.

The AC-FTA effective on Jan. 1, 2010 applied zero tariffs on 6,682 tariff lines in 17 sectors, including 12 in manufacturing, and five in agriculture, mining and maritime sectors.


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