Application of the Free Trade Agreement (FTA) ASEAN-China could significantly impact the industry hitting the small and labor intensive.
This was conveyed Head of Asia Pacific Studies Center Gadjah Mada University in Sri Adiningsih Indonesia Economic Outlook Seminar 2010 at the Hotel Borobudur, Jakarta, Monday (21/12/2009).
According to Sri, the ASEAN-China FTA has the potential to make a small industry out of business because Indonesia can not compete with products from China.
“My concern, showing that entrepreneurs can not compete with Chinese products much folded. I think deserve to see South Africa, many of which collapsed because it could not compete with China because many are not ready,” said Sri.
The impact of these, plus Sri, will be even greater if it happened with the labor-intensive industries because it will cause many social problems with unemployment. “Maybe it could have entered the informal micro but that’s not guarantee a decent life,” said Sri.
Therefore, said Sri, the government is expected to renegotiate the FTA plan for the industry is not ready. In addition, providing support for Indonesian products can compete with China and other countries.
“The government provides support to entrepreneurs in order to prepare competitive, because our customers do not nationalist,” Sri appealed.
