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17 February 2010

Indonesia to tighten standard requirements on imports

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Indonesia will tighten the implementation of SNI standard requirements to prevent the inflow of cheap and low quality products following the implementation of the Asean-China Free Trade Agreement (ACFTA), the Antara news agency reported quoting a minister.

"We support the implementation of the Indonesian National Standard as an anticipatory measure against goods of below standards coming into the country," manpower and transmigration minister Muhaimin Iskandar said at a press conference at his office Tuesday.

He said the government would also take concrete steps to anticipate the negative impact of the implementation of the ACFTA.

He said the government would conduct revitalization of its industries so that their products could compete with those from abroad particularly from China.

On worries about lay-offs following the implementation of ACFTA the minister said no indicators had shown that the implementation of ACFTA would lead to lay-offs.

He said the implementation of the ACFTA would affect 30 percent of workers in the formal sector while 70 percent of workers in the country were in the informal sector.

He said the lay-offs that happened now were not related with the ACFTA.
"According to recent data no lay-off was related to the implementation of ACFTA so far," he said.

The layoffs so far were connected with industrial relations and recruitment and working patterns, he said.

The minister urged for increased bipartite communications with regard to seeking a solution for dealing with global competition and anticipating possible layoffs following the implementation of the ACFTA.

In view of that he said the government would assign a special team to monitor and detect layoffs that are not done according to procedures and laws.

Regarding the layoffs at several companies such as JICT, Indosiar, Berita Kota, PT PAL, Mayora, Hotel Papandayan and Grand Aquila the minister suggested that the companies would cancel their decision and employ back those who had been fired.

"In view of current high unemployment, limited jobs and humanitarian reasons I appeal to the employers to cancel their decision and resume employing those who have been dismissed," he said.

Minister Muhaimin also called for an immediate meeting between the employers and employees to find a quick solution to prevent the layoffs.

"To the workers I appeal to adhere to the manpower law, and company regulations and I also call for increased cooperation between the employers and workers," he said.


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