VIVAnews - The Indonesian government will remove 42.56 percent tariff posts up until 2016 as regards the ASEAN free trade agreement with India. The tariff cut is categorized normal-track, which gradually applies decrease imports from India by 59.21 percent starting from 2009 until 2016.
Moreover, the remaining tariff posts of 57.44 percent which is categorized sensitive-track will be lifted by Indonesia from 2016 until 2019.
On the contrary, India is committed to erase 79.35 percent normal-track tariff posts. Meanwhile, India will successively 20.66 percent of its remaining tariff posts which equal 46.56 percent of import from Indonesia.
According to Trade Minister Mari Elka Pangestu, Indonesia has quite a significant commitment to protect the national industry because the tariff posts that will be lifted until 2018 will be around 46.17 percent.
"94.75 percent of Indonesia's export to India, equal to US$6.2 billion, will have an increase in market access within the next 10 years," said Mari on Monday, August 10.
In response to the free trade agreement, business community urged the government assure fair regional trade between the two countries.
Mari claimed that the ASEAN free trade agreement with India will give more benefit to Indonesia.
According to her, prior to the FTA negotiation, Malaysia had carried out a feasibility study. "As for the FTA, Malaysia is assigned to deal with other ASEAN countries," said Mari.
In addition, Indonesia had set out a joint study to improve the position in the negotiation.
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Translated by: Bonardo Maulana Wahono
