WEBODIGY Business & Finance Journal

Golkar Party faction (FPG) asked President Susilo Bambang Yudhoyono (SBY) to delay the implementation of free trade China-ASEAN (China-ASEAN Free Trade Area / CAFTA) considering the very adverse effects for the national manufacturing industry.

CAFTA by the Golkar Party faction will potentially increase the rate of unemployment and poverty in absolute terms. The statement was made by the Secretary of the Golkar Party faction Ade Komarudin via Press Release that was sent to the media, Sunday (10.1.2010).

“With the implementation of CAFTA, the national manufacturing industry which has been used as a national backbone to absorb labor would be closed by itself. Our manufacturing industry will not be able to compete from the invasion of China products. As a result, unemployment and poverty rates soared, due to widespread layoffs and lack of investment in manufacturing industries. When this happens, it is quite likely to trigger a national instability, “he said.

Therefore, continued Ade, the Golkar Party asked the government to postpone the agreement for the national interest is greater. “Developed countries are also doing that, if the interests affected nasonalnya. Look at the attitude of the United States and other developed countries in WTO negotiations, they tried and are very protective of its national interests,” he said.

According to Ade, the Golkar Party faction argued, but will increase unemployment and poverty, CAFTA will affect the balance of trade imbalance between China and Indonesia. “We are only able to sell raw materials or semi-processed yet, while the government is aggressively pushing China to export to foreign countries with schemes to encourage industry policies that can compete in a productive, so between our imports and exports will be crippled by itself,” he explained.

He said, to grow and develop national industry is still plagued by a lack of infrastructure, high transport costs and port services are still complicated. “With such a large obstacle, the Golkar Party faction rate is unethical for the government to let the national manufacturing industry ‘dead’ by itself due to the implementation of CAFTA agreement.”

Industrial sector which will sink if the study is performed according CAFTA Golkar Party is the textile industry and textile products (TPT), petrochemical industry, industrial equipment and agricultural machinery, footwear, synthetic fiber industry, electronic industry (including cable and electrical equipment), industrial machinery, industrial engineering and steel industry.

“In Vietnam we have manufactured products have lost, especially with China products. That’s why we suggest to the government to examine and assess which products are ready for release within the framework of free trade, and for industrial products that have not been able to compete government should do renegoisasi back to the products included in the list of delayed free trade China-Asean. ”

To help the performance of national industries in the face of global competition, FPG asked the central and local governments to establish a harmonious relationship with the business. “The government should assist the business community in an effort to improve performance through regulation, incentives and facilities that enable businesses to compete competitively. Central and local governments must be synchronized to take and implement policies. So far, the central government policy, sometimes run differently in the region, it is reflected by the number of laws that are not business friendly. ”

Golkar Party faction admitted, that the CAFTA agreement also opens new market opportunities for national industry. “Viewed from the population, the FPG admitted, that the potential market is huge. So the national industrial opportunities to enlarge its market share is also very large. Therefore, FPG in the proposal asked the government to delay implementation for manufacturing products that certainly has not been able to compete,” he added