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26 January 2010

Indonesian govt urged to intensify domestic market protection

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The Indonesian government must intensify domestic market protection because renegotiations of the Asean-China Free Trade Agreement (ACFTA) cannot be counted on, national news agency Antara reported, quoting a business community spokesman.

"We cannot expect something to come out from the renegotiation of the ACFTA agreement. What is more important is serious government efforts to do its homework," Indonesian Businessmen`s Associaiton (Apindo) chariman Sofyan Wanandi said Monday.

He said the tariff reduction of commodities included in the 228 tariff lines under the ACFTA could actually be postponed as requested by Indonesian businesses but the government did not make a serious effort.

"So, the ministry of industry had better prepare soon product requirements that meet the quality based on the Indonesian National Standard (SNI) so that goods entering the country would not be those with bad quality," he said.

Besides, on the standard of imported goods and their supervision, the government should also strengthen the anti-dumping instrument to protect domestic industry from being flooded by imported goods.

"At present, the Indonesian Anti-Dumping Committee and the Indonesian Trade Protection Committee only get a budget of Rp5 billion per annum. It is only enough for one or two matters. If they are not supported by lawyers and accountants, they will face a problem," Wanandi said.


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