Indonesia to Enforce Inland Free Trade
13 May 2015 08:00 WIB
TEMPO.CO, Jakarta - Indonesia is set to offer a specific scheme of free trade named Inland Free Trade Arrangement (Inland FTA), in order to boost investment. The scheme allows the government to facilitate trade or customs in a form of free trade preference to nations without trade deals, as long as they have domestic industrial facility.
“It is to open a bigger space for investment by considering preferred sectors,” said Head of Capital Investment Board (BKPM), Franky Sibarani. He added that the government is to create liberal trade preference to jumpstart Indonesia ahead of other ASEAN countries.
“In this competitive era, it is important to have creative policy,” he said.
However, International Trade Directorate General, Bachrul Chairi, added that Inland FTA will not apply to all sectors. It is possible that the policy will apply to half-processed goods, which mostly are still imported.
"Besides, the outcome must have 40 percent of local content," he said.
KHAIRUL ANAM | PINGIT ARIA
