Indonesia: ACFTA transforms smuggled goods into legal imports
Implementation of the ASEAN-China Free Trade Agreement (ACFTA) should not cause such fear what will happen is that products smuggled from China will be legalized, the national news agency Antara quoted one Chatib Basri finance minister Indonesia expert, says.
"We have been worried about something that really happened. Chinese products have been here through smuggling. Now just legalising them," he said after the discussion on the 100th day of the first President Susilo Bambang Yudhoyono `s administration and the Indonesian economy on Tuesday .
He said the smuggling of Chinese products because prices in China is different from that in Indonesia because of the imposition of import duties.
With the reduction of duties through ACFTA product prices in Indonesia would be the same as in China. "If the reduced duty imports will go to the law. The impact will be seen on the import of data later," he said.
Chatib said that Chinese products have entered the country in the last ten years. He said the reduction in duty will not cause spikes imports.
"When the job an average decline of our task is already low, which is seven per cent so if they cut further impact will not be as scared as we think," he said.
A senior researcher at the Habibie Center, Umar Juoro, meanwhile said the impact of the implementation of ACFTA can not be stopped even be delayed.
"No matter how long it will be delayed will not be stopped. What had become a problem is that China will not relocate the indutries to Indonesia because they needed to provide jobs for its citizens," he said.
In view of that he said the government should be able to push the market to take advantage buinessmen which has been opened through the ACFTA.
"The challenge will be how to create a selective strategy that people will get more benefits," he said.
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