Indonesia minister denies 'protectionism'

Indonesia is only catching up with other countries in the regulation of trade in response to the surge of imports brought about by low tariffs and a booming economy, he told the Wall Street Journal in an interview.

“My posture is not protectionist,” Wirjawan was quoted as saying.

“The fact is that there are thousands of products out there that are not in compliance with the rules and regulations in terms of environmental concerns, safety measures and labeling,” he added.

President Susilo Bambang Yudhoyono in October appointed Wirjawan as the new trade minister in a cabinet reshuffle which Yudhoyono said was “to improve the performance and effectiveness of the cabinet.”

The respected former investment banker replaced Mari Elka Pangestu, one of the country's most high-profile ministers who is widely seen as supportive of liberal and free trade policies.

Wirjawan has already sparked concern in business and diplomatic circles by limiting rattan exports meant to help the struggling local furniture industry and unveiling plans for tighter safety and labeling requirements on imports, the report said.

The government is in the process of identifying which types of imports would require tighter regulations, including mangoes, potatoes, steel, toys and used clothing, it added.

Wirjawan, the outgoing chairman of Indonesia's Investment Coordinating Board, maintained he only wanted to ensure Indonesian businesses were shielded from unfair competition and were spurred to make better quality goods.

“We need to climb up the value chain and make sure that we are able to produce goods and services. Hopefully we won't just produce Nike shoes; hopefully someday we can make iPads,” he said.

Indonesia's economy is Southeast Asia's biggest and among the fastest-growing in the world, with rich reserves of natural resources and a thriving domestic market of 240 million people.

The central bank last week predicted a 6.5 percent economic expansion for the fourth quarter and an annual expansion of 6.5 percent by the year-end.

The government has estimated that exports will be worth US$200 billion by the end of the year.

Subscribe to The China Post and save 25%. Click here

PrintEmail

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

Submit

 Receive China Post promos
 Respond to this email