Indonesia: More industry protection announced
Description
On 21 January 2010, President Susila Bambang Yudhoyono said to reporters that the government would protect businesses, while pursuing talks with China to avoid negative impacts of the free trade deal between ASEAN and China (the ACFTA).
The ACFTA became fully effective on 1 January this year and has introduced zero tariffs in 17 sectors including manufacturing, agriculture, mining and maritime sectors. The House of Representatives' commission VI overseeing industry and trade has earlier demanded the government to re-negotiate tariffs on garments, furniture and footwear, among others. The governement is given six months to re-negotiate and review this issue. Hatta Rajasa, Coordinating Economic Minster, has confirmed that the re-negotiation of the FTA is on the agenda with the president.
Sri Mulyani Indrawati, Finance Minister, said the government would boost business competitiveness by revitalizing labor-intensive manufacturing industry and provide greater access for SMEs to borrow, while building and improving infrastructure to ease the flow of goods. He added that the government has fiscal space in the state budget to protect certain industries hurt by the ACFTA.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | |
| Is there any evidence that alternatives to the proposed measure were considered? | |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | |
| Was such evidence identified? | |
| Is such evidence publicly available? | |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | |
| Did the government state its intention to review the measure within one year of implementation? |
Date Discovered:
Implemented: No
Date of inception:
GTA Evaluation: Amber
Source:
Ministry of Industry and the Jakarta Post, 22 January 2010 (http://www.depperin.go.id/ENG/Publication/IndReview/2010/20102501.htm)
Ministry of Industry and the Jakarta Post, 21 January 2010 (http://www.depperin.go.id/ENG/Publication/IndReview/2010/20102201.htm)
Government Response:
- 496 reads
