Refleksi: Dalam pertanding tinju, kalau kedua petinju sama kelasnya, tentu 
tidak begitu besar problem. Sebab ditangung sama-sama kuat.  Tetapi kalau kelas 
berat lawan kelas bulu kambing, pasti managernya sinting. Sebab hasil 
pertandingan demikian  sudah dari mula  diketahui hasilnya. Siapa menang, siapa 
kalah. Begitu pula keadaannya dalam dunia perdagangan bebas. Tetapi, siapa 
tahu, mungkin doktor ekonomi kita mempunyai konsep teori baru yang sangat 
mujarab bagi negeri yang keadaan ekonominya seperti kerajaan Pacistan.

  no, no, no,
 

http://thejakartaglobe.com/home/industries-sound-alarm-over-china-indonesia-free-trade-deal/342302

November 18, 2009 
Muhamad Al Azhari, Dian Ariffahmi & Irvan Tisnabudi



Industries Sound Alarm Over China-Indonesia Free-Trade Deal

Some key industry players are warning of a doomsday scenario for domestic 
businesses under a forthcoming regional free-trade agreement with China, saying 
it will cause substantial losses for Indonesian manufacturers and bury the 
country's steel sector.

Speaking at what turned into a rowdy seminar on Tuesday to discuss the 
Association of Southeast Asian Nations free-trade deal with China, Purwono 
Widodo, executive committee member of the Indonesian Iron and Steel Industry 
Association, said eliminating import duties on Chinese goods was "a blessing 
for China to practice market colonialism in Indonesia."

"China's products are well known for being cheap, and it is the toughest 
competitor in Indonesia," Purwono said. "Our domestic steel industry could be 
put out of business should the [agreement] be implemented."

China signed the free-trade pact with the 10 members of Asean, including 
Indonesia, in November 2002, with broader terms of the agreement set to go into 
affect in 2010. 

Under the deal, the signatories agreed to scrap import taxes early next year on 
manufactured goods such as steel, textiles and footwear. Tariffs in other 
sectors, such as food and beverages and electronic goods, will be gradually 
reduced beginning on Jan. 1 until they are eliminated in 2018.

Ernovian Ismy, secretary general of the Indonesian Textile Association, said 
the nation had already suffered heavy trade deficits in recent years in 
textiles and garments and the worst was yet to come.

Citing data from the Central Statistics Agency (BPS), he said Indonesian 
textile and garment exports to China were $175 million in 2008, while imports 
were $1.03 billion, leaving Indonesia with an $860 million trade deficit in the 
sector.

"What can we do? They are giant producers. That figure does not include illegal 
garment products that have been flooding into our country," Ernovian said. "The 
[Indonesian] government must realize that we are a market for [Chinese] 
products."

Economist Faisal Basri said during the seminar that Indonesia's manufacturers, 
which have experienced slow growth recently, would be put in jeopardy by free 
trade with China, and would also have trouble attracting foreign investment.

"When import duties are scrapped, then foreign firms will prefer to directly 
sell their products here rather than invest in the country," Faisal said.

He added that the manufacturing sector was struggling from the fallout of the 
global economic downturn, as well as from traditional problems such as high 
bank lending rates, low-quality human resources, high dependency on imported 
raw materials and poor technology. He said Indonesia posted a trade deficit of 
$3.6 billion with China in 2008. 

Responding to the concerns, I Gusti Putu Suryawirawan, director for metal 
industries at the Ministry of Industry, said potential losses would be 
mitigated by insuring that local products, including textiles and steel, were 
used by state-owned enterprises. 

"There's been a presidential instruction regarding this matter," Gusti said.










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