RI, CHINA SET UP WORKING GROUP TO OVERCOME ACFTA's IMPACT

Jakarta, Apr 5 (ANTARA) - Indonesia and China agreed to set up a working group to overcome the impact of the implementation of the Asean-China Free Trade Agreement (ACFTA).

Indonesian Trade Minister Mari E Pangestu said in a press statement received by ANTARA here on Monday that she and her Chinese counterpart Chen Deming had signed the "Agreed Minutes of the Meeting for Further Strengthening Economic and Trade Cooperation" at the Indonesia-China Joint Commission Meeting in Yogyakarta on April 3.

"The Agreed Minutes" she said was an agreement made by the two countries' governments regarding joint steps to be taken to settle problems faced by certain sectors in Indonesia as a result of the implementation of the ACFTA.

"The essence of the agreement is how to implement the ACFTA fully for mutual benefit," she said.

Mari said in the implementation of the agreement the two sides agreed to develop strategic steps for the long-term interests of the two countries including forming a working group to conduct analysis on data and information of two-way trade between the two countries and recommend steps needed with priority put on certain sectors particularly iron and steel, textile and textile products and shoes.

"Within two months at the latest (the working group will already be formed)," she said.

Iron, steel, textile and textile products and shoes comprise around 80 percent of 228 tariff objects of concern by Indonesia with regard to the ACFTA implementation.

Mari said the Indonesian government would name representatives that would sit in the working group along with their Chinese counterparts and facilitate immediately cooperation between the two countries' business associations concerned including funding and credit needs to be distributed through the cooperation between the two countries' financial institutions.

Besides agreeing on trade aspects, the two sides have also agreed to strive to make the sectors concerned and also other sectors which are the next priority of the two sides to get credit funding support and soft loans for revitalization efforts, investment and further development.

She said the two sides also agreed to support infrastructure development in Indonesia through various schemes to be formulated in a separate agreement.

China will also support the Indonesian program to improve connectivity among the country's regions and islands.

"The two will also promote cooperation and dialogue among business associations in the two countries' priority sectors," she said.

Mari said the two countries also agreed to achieve high and sustained trade growth and so in case imbalances occur the party enjoying a surplus must take measures to increase imports and give the needed support to its partner needs.

She said the Indonesian government is optimistic the agreement would be a comprehensive framework which on the one side will make various sectors in Indonesia able to take a benefit out of the ACFTA and on the other side overcome better and more effectively their worries over the possible impact of the ACFTA.

"Following the achievement of the agreement we, that have been assigned to hold the special discussion on it, have already reported all the results to the coordinating minister of economic affairs and according to him, he will in the near future hold a coordination meeting to discuss coordinated further steps to implement all points in the agreement," she said.

Mari said she had also discussed and agreed with the Chinese trade minister that in order to maintain a healthy two-way trade between the two countries they would increase cooperation between the two countries' customs and other offices concerned to overcome illegal imports of low-standard and cheap goods which have so far hurt Indonesian industries particularly small and medium-sized companies.