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15 March 2010

Thirty percent of Indonesian exports to China use FTA facility

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Thirty percent of Indonesian exports to China are carried out using a tariff reduction facility provided in the Asean-China Free Trade Agreement, state news agency Antara quoted Deputy Trade Minister Mahendra Siregar as saying.

"Thirty percent of Indonesian exports in 2009 used the FTA facility," he said in a press conference here on Friday.

Based on the trade ministry’s records, in 2009 Indonesia issued 16,606 Form E certificates of origin (SKA) for exports to China. The value of the exports in the year reached $2.6 billion.

"The more products included in the ACFTA list (for tariff reduction) in 2010 the more SKA Form E certificates will be produced, reaching more than 30 percent," he said.

Indonesia’s biggest exports to China that used SKA Form E are fuel products/mineral oils reaching 480 with a total volume of 12.9 billion tons worth US$1.01 billion.

A lot of exports of fat and animal oil or vegetable oil which is 90 percent crude palm oil also used SKA Form E. The value of the exports in 2009 using the facility reached 223.2 million tons worth $425.5 million.

In terms of SKA, textiles and textile products are the ones that have used the facility most (1,916 SKAs) reaching 40.9 million tons in volume and $57.6 million in value.
Rubber and rubber products fell second (1,202 SKAs) reaching 147.4 million tons worth $225 million.


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