Indonesia Today

RI needs to increase competitiveness in facing ACFTA

Indonesia needs to increase its product competitiveness in facing the ASEAN China Free Trade Area (ACFTA) in 2010, economic analyst of the Yogyakarta Muhammadiyah University (UMY) Lilies Setiartiti said.

“Raising the competitiveness needs to be done by improving internal aspects like the existing inefficient bureaucracy,” the UMY economic lecturer said here Friday.She said an inefficient bureaucracy will also lead to an equally inefficient business.

She added that ACFTA is not only aimed at increasing cooperation in trade and economic liberalization, but seeking new areas or markets in the countries involved as well.

“Indonesia has no need to hurriedly seek other countries for the marketing of its products, but first needs to improve its internal capacities to be enable it to compete with Chinese goods flooding Indonesia,” he said.

He said Indonesia must not become a trash can or market for Chinese products or of those of the other four ASEAN member countries.

“Especially some products are included in the early harvest program like agricultural products and meat who tariffs would soon be reduced to nil percent,” he said.

Therefore the government and business players were expected to play tricks in the free trade, such as by reducing the flow of Chinese products entering Indonesia like foodstuffs and meat, the government will find an excuse like the bad social condition of the local population.

Starting in early 2010 under the ACFTA, Indonesia will set its foot in the free trade arena in the five ASEAN founding countries and China. The five ASEAN founding countries are Indonesia, Malaysia, Singapore, the Philippines, and Thailand.(*)