People in Indonesia, including the government, have been very busy thinking, talking and doing things which are related to Indonesian domestic matters, like Corruption & Injustice, that they forgot that the ASEAN-China Free Trade Agreement (FTA) will come into force today.
Under this agreement, China and six founding members of Asean, Indonesia, Malaysia, Thailand, the Philippines, Singapore and Brunei, will remove tariffs on around 7,000 product categories. While the other Asean members, Vietnam, Burma, Cambodia and Laos, will follow on 2015.
The problem is that industries in Indonesia, e.g Steel, Textile, Furniture, have stated that they are still not ready to compete with very cheap Chinese products and requested for temporary postponement of the implementation of FTA. However, considering that the government has not responded positively, therefore Indonesia have to implement the FTA.
For details, please click here, here, here and here.
In spite of the above, I still hope that the government will use its rights, as given by the FTA, to request for at least 3 years postponement, merely because the FTA will have great impact on our industries and cause massive operational close down that will cause massive unemployment and social-politic instability.