VIVAnews - Indonesia signed the FTA deal with China in 2004. However, the disagreement against the deal reverberated in the country later after the zero percent tariff is imposed upon manufacturing products.
According to Head of Institute of Research and Community Outreach (LPPM) of Atma Jaya University, A Presetyantoko, Indonesia will be losing around US$6.9 billion by withdrawing its participation in the ACFTA.
"Indonesia may gain profit by US$6.9 billion by involving in the ACFTA," he said on Wednesday, March 17.
If Indonesia turns down the ACFTA, according to him, the exported products will suffer from losses due to normal tariff impose of 10-20 percent. Meanwhile, other ASEAN countries are imposed zero percent.
As a result, the exports from Indonesia to China and other ASEAN countries will be less competitive.
Another fact shows that the growth rate of export from Indonesia to China is faster compared to other countries.
"Kalau kita stop maka akan kehilangan pasar yang pertumbuhannya cepat, meski sekarang potensi neraca dengan China masih defisit," kata dia.
The trading deficit between Indonesia and China, according to him, continues to decline taking into account the trend recorded in the last 10 years.
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Translated by: Bonardo Maulana W
