Thursday, 7 November 2013


In the midst of the enthusiasm for the strengthen of industrial competitiveness and the securing of domestic products markets, Indonesia faces the challenge of high invasion of imported products as a result of the implementation of free trade agreement (FTA). Various effort have been undertaken by the Ministry of Industry to promote the use of domestic products through the application of regulations and stimulant program such as the campaign for domestic goods usage intensification (P3DN) in each line of economic activity.

Fauzi Aziz, Expert Staff of the Minister of Industry for Marketing and Domestic Goods Usage Intensification, on Monday (October 7), said that the government had set up arrangement for policy and socialization in the implementation of P3DN. It also conducted monitoring, evaluation, and troubleshooting of the implementation of P3DN, one of which has been implemented since 2010, which is the P3DN award called “Cinta Karya Bangsa” with the aim to provide appreciation and respect to the Ministries/Non-Ministerial Government Institutions/State-Owned Enterprises/Regional Enterprises, Provincial Government and Regental/City Governments that have excelled in implementing the domestic goods usage intensification program.

Aziz reminded the businesses that the ASEAN free trade 2015 will soon arrive. ASEAN has now become one of Asia’s premier attractions besides China and India for businesspeople around the world. He said that ASEAN is moving slowly but surely toward a future together. Based on this spirit, especially in the field of ASEAN Industrial Cooperation (AICO) scheme which echoes now fade, it needs to be reactivated. AICO aims to promote joint manufacturing industrial activity between ASEAN-based companies.

In terms of industrial development and industrial cooperation, the right strategy to be done by Indonesia is by positioning it self as a regional production base area. Therefore, the role of the Ministry of Industry, the Ministry of Trade, and the Investment Coordinating Board (BKPM) becomes very strategic to the success of the mission, which is how industrial cooperation can be accelerated quickly. He considered that it is very appropriate if the President initiated to organize Indonesia forces before the implementation of AEC 2015 with the involvement of the House of Representatives and the Regional Representative Council (DPD).

Aziz admitted that currently Indonesia experienced trade deficit. He said that the solution to overcome the deficit of Indonesian trade balance is by implementing a policy based on domestic product security, and it is the authority of the Ministry of Trade. He said that the Ministry of Trade should be more intensive in doing safeguard, such as implementing anti dumping programs, and it also has to carry out law enforcement on goods which are not affixed with SNI label and are not valid for circulation.

According to him, the Ministry of Trade should revoke and/or destroy goods that are not stamped with SNI label or not feasible for circulation in Indonesia. To do that, the Ministry of Trade needs to get assistance from other institutions, such as the police and the customs & excise. On the other hand, the Ministry of Industry will also review the provisions of Free Trade Agreement (FTA) and Economic Partnership Agreement (EPA) which is currently circulating.

Meanwhile, domestic producers are now glad because the Indonesian Trade Security Committee (KPPI) of the Ministry of Trade now present a more stringent policy instrument in securing domestic producers due to high import surges. Trade safeguard measures include the imposition of additional tariff, import quota restrictions or a combination of both. This issue was raised in the socialization of trade safeguard measures in order to protect domestic producers from the negative impact of import surges. 

Business News - October 9, 2013

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