Indonesia warns of open ASEAN market

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supermarket-JakartaIndonesia’s Industry Ministry MS Hidayat expressed his concerns on October 25 over the possibility that local manufacturers would lose out in trading goods when the ASEAN Economic Community (AEC) becomes effective in 2015, the Jakarta Post reported.

He said the influx of goods from other ASEAN member countries would flood the domestic market in a desire to capitalise from the growing middle class, and local producers had only two years left to enhance their skills and capacity to meet the increased competition.

“The 2015 AEC will provide our nation with many opportunities but also challenges with such an expanded market for our industrial products,” he said during an Indonesian Chamber of Commerce and Industry meeting which focused on strengthening added value in local industries to edge out the imminent competition.

“On the positive side, the AEC will attract foreign investment to Indonesia and provide joint venture opportunities to gain wider access to raw materials,” Hidayat said.

He said Indonesia needed to learn from the implementation of the ASEAN-China Free Trade Area (ACFTA) in 2010. China’s manufactured goods began flooding the Indonesian market in early 2010 at lower prices, beating similar products produced locally.

Citing the similarities of products manufactured by neighbouring ASEAN members, he said Indonesia would likely have to compete in the same market segments.

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Reading Time: 1 minute

Indonesia’s Industry Ministry MS Hidayat expressed his concerns on October 25 over the possibility that local manufacturers would lose out in trading goods when the ASEAN Economic Community (AEC) becomes effective in 2015, the Jakarta Post reported.

Reading Time: 1 minute

supermarket-JakartaIndonesia’s Industry Ministry MS Hidayat expressed his concerns on October 25 over the possibility that local manufacturers would lose out in trading goods when the ASEAN Economic Community (AEC) becomes effective in 2015, the Jakarta Post reported.

He said the influx of goods from other ASEAN member countries would flood the domestic market in a desire to capitalise from the growing middle class, and local producers had only two years left to enhance their skills and capacity to meet the increased competition.

“The 2015 AEC will provide our nation with many opportunities but also challenges with such an expanded market for our industrial products,” he said during an Indonesian Chamber of Commerce and Industry meeting which focused on strengthening added value in local industries to edge out the imminent competition.

“On the positive side, the AEC will attract foreign investment to Indonesia and provide joint venture opportunities to gain wider access to raw materials,” Hidayat said.

He said Indonesia needed to learn from the implementation of the ASEAN-China Free Trade Area (ACFTA) in 2010. China’s manufactured goods began flooding the Indonesian market in early 2010 at lower prices, beating similar products produced locally.

Citing the similarities of products manufactured by neighbouring ASEAN members, he said Indonesia would likely have to compete in the same market segments.

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