Speech for Alsa 2010 Revisi Preliminary Round

8/9/2019 Speech for Alsa 2010 Revisi Preliminary Round

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Muhammad Ardiansyah LastianurEEC UNILA

Ladies and Gentlemen.

An article from one of the newspaper in Indonesia, The Jakarta Post, on Janurary 14, 2010 reports

that a spokesman for the Ministry of Industry, Muhdory, confirmed that the Ministry had submitted a

letter to the Coordinating Economics Minister, Hatta Rajasa, on December 20, 2009, about the

request scheduled tariff reductions on 146 products lines be delayed by one year. The letter also asked

for rescheduled tariff reductions for further 60 items to be delayed by two years and for 22 items to be

delayed until 2018. A final decision on wheter Indonesia would forward those request to Asean or not.

Since the Asean-China Free Trade Agreement was implemented, concerns have risen over the

readiness of Indonesias Industries to compete with Chinas labour and products. Most industries were

worried that, without protective measure from the government, their products would be replaced by

less expensive products from China. Some of these industries also voiced their concerns and

argumentation about the impacts of the FTA, the fear of joblessness, deindustrialization, the

replacement of products, and the market demand , would give lots of influence in the market. Without

clear guidelines as to what the FTA entails and its impact to the Indonesian Industries, it is no wonder

that absolutely, the public and the industries are nervous and worried about the FTA it self.

On the other hand, the government has tried to communicate to the public about the positive aspects

of FTA which is as a greater competetitiveness among Indonesian Industries, which, in turn, willincrease the quality of Indonesian product because of the competitive environment that forced the

industries to make a good one.

Moving to another fact, there is also the obvious benefit of Asean-China free trade zone being the

third biggest in the world in volume after the European Economics Area and the North American Free

Trade Area, based on the data that there are about 1,9 billion people in the population of Asia, that

indirectly result a tremendous market which opens up trade opportunities for all Asean country with

China.

However, this Asean-China Free trade Agreement that was signed by all countries in Asia still gives

some A to the B or B to the C, that I mean here is like an uncertain and unsure things that is done by

the government by spent much time in making consideration that make our country looks unready

every day to day.

Those things that finally become questions for every part of us as Indonesian, should such a

postponement be enacted? Should Indonesia reschedule and delay or maybe reject this Asian-ChinaFree Trade Agreement? Should we go away from this just because the fearness and the unreadiness

that always being our weakness?


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Well, ladies and gentlemen, Iam Muhammad Ardiansyah Lastianur, the University of Lampung

student, majoring in Management of Economics Faculty as my discipline of science, standing here in

front of you, to share what Ive known and what Ive got in my process of learning about what we are

going to discuss here, the readiness of Indonesia to implement free trade corporation with China.

Ladies and gentlemen. Indonesia is the country with consist of 18,110 island with 33 province from

Sabang until Marauke, with the amount of population is about 230 million people in 2008, that most

of them are farmers and work in agricultural sector which is the third biggest after manufacturing

industry trade, hotel and restaurant.

Agricultural has become the most important sector because Indonesia has strategic condition of nature

supported by climatic conditions appropriate for agricultural activities throughout the year. Although

we cannot deny that it suffers from many disadvantages in developing the resources such as, lack of

managerial skill, entrepreneurship and leadership, low of capital support, low of technology

innovation, protection for domestic products with foreign or imported products, and the difficult

bureaucracy in the government. Those problems sometimes contribute in making Indonesian

Agriculture products are difficult to enter the world market.

But we may have to take a breath since there was a good news from the discussion on January 12,

2010 that is attended by the members of Trade and Economics Ministries, Indonesian Chamber ofCommerce Asean, and all country from Asia-Pasific and China committees, which mentioned that

Indonesias stellar economics performance in recent years as well as its resilience in the face of global

economics crisis that happened in 2008 to 2009, especially from the manufacturing sectors. When

some of country is getting down, but Indonesia could still giving a well perform in economics. It all

has caused other members of Asean to look forward Indonesia as a leading Asean Nation.

Therefor, Indonesia is deemed ready for the ASEAN-China Free Trade Area, still, with some facts,

requirements and explanation, Indonesian government should rethink the movement carefully before

proposing a renegotiation or doing postponement.

Well, I dont mean to underestimate one thing, but I just want to state that, we dont need to scare

about the China labours and product that were offered since we know that it covers half of market in

Indonesia. Because the costumer needs not only the less expensive one, but also the quality form the

product it self. We have to believe that not all their products have better quality than Indonesia has. It

is proven by the Indonesia products would stay and hold in safe to consume more than a year, but the

Chinas one only hold in six mounths and after that replace by the new import one.


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In this globalization era, the involved of one country in international trade society or community such

as WTO (World Trade Organization), APEC(Asia Pasific Economics Coorporation), FTA (Free Trade

Agreement), and of course ACFTA (Asean-China Free Trade Agreement) could become a good

opportunity of course for Indonesia to expand the market not only to developing country, but also to

developed country. Based on the consideration that International Trade may possibly increase the

utilization of national resources, generates economics scale, intensify and capitalize the international

capital flow, and of course provide a good environment for transfer technology that will give a lot of

impact offered as a big opportunity.

So, by the explanation that is mentioned above, we have to know that, the impact of the FTA, for sure,

will affect the Indonesian business sector, and increase the productivity and the quality from the

industry because of the competitiveness in the market that push the government and the industry to

think about an incentive programme to boost the productivity and competitiveness of the various

products seriously.An intensive research on other bilateral and multilateral FTA must be conducted.

The result could inform the policy makers and the bureaucrats in government to concidere how they

could present Indonesia case in the Asean-China FTA. The mass media would be an excellent outlet

for such an announcement to the public about the providing of the way to reach government for the

business sectors in Indonesia.

Indonesian government has to set up the domestic strategic planning and international strategic

planning to develop and control the quality of Indonesian Products and reinforce the national safety

and security. Both this strategies could be through international certification for agricultural products,

manufacturing products, or homemade industries for the ACFTA strategic product arrangement that is

finally make Indonesia able to enter the International trade market.

And effective communication channel must be maintained to ensure the information between two

sectors to reduce anykinds of uncertainities or misunderstanding. Both government and business

sectors must also remember that this Free Trade Agreement was signed by all Asean country with

China, its not bilateral agreement between Indonesia-China, Malaysia-China, Filiphine-China, or

Singapore-China, but here, this FTA is for all country in Asean. And as our progress, Indonesia must

improve its own level of competitiveness and adapt to international integration.

Finally, all my suggestions can only be applicated if we as the civilization of Indonesia are understand

in accepting a new way to attain more advantages from international trade for the betterment of

Indonesian Economics sectors for all the sector in Indonesia, from agricultural, manufacturing

industries, trade, hotel, tourism, electricity, oil, homemade industries and etc. And for you and me, as

a student, we need to continue to push our government for greater cross border communication and


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understanding about how trade can benefit all parties from individuals, companies, and countries

involved in it.

By the spirit of the youth, the spirit of volunteer, awareness and willingness, we do it all together, in

the name of unity in diversity.

Thank you.

Documents

Speech for Alsa 2010 Revisi Preliminary Round