President says ACFTA not a threat

The Jakarta Post, Jakarta | Mon, 01/25/2010 4:30 PM

President Susilo Bambang Yudhoyono said Monday the ASEAN-China Free Trade Agreement posed no threat to the Indonesian economy, but would provide the nation with opportunities.

Indonesia’s exports to China increased in 2009, while at the same time its exports to Europe and the US nose-dived, Yudhoyono said.

“The volume [of Indonesia’s exports to China] exceeded US$30 million. Therefore, the ACFTA is not a threat but an opportunity,” he said in a speech to mark the opening of the Indonesian Military leadership meeting.

Yudhoyono was aware, however, that a number of industry sectors were unprepared for and would not be forced to implement the free trade regime. He promised to discuss the issue with China in an amicable forum.

Any bilateral agreement with China is expected to protect specific industry sectors, without Indonesia having to quit from the ACFTA completely.