TEMPO.CO, Jakarta - Indonesia will fight for the Domestic Component Level (TKDN) if the government decides to join the Trans-Pacific Partnership (TPP). Achmad Sigit Dwiwahyono, director general of the security and development of international industry access at the Trade Ministry, said one way to do that is by limiting the selling price of products.
Achmad said that one of the clauses contained in the TPP is the negation of local component, which is deemed a hamper to the process of trading goods and cooperation in the field of logistics. Achmad proposed a solution in the form of benchmark selling prices for goods or commodities that will be liberalized through the TPP.
"We are reviewing how much the limit should be by looking at the benchmark prices set by countries that have joined the TPP," he said at the parliament complex yesterday.
President Joko Widodo is considering joining the TPP along with ASEAN neighbors Malaysia, Vietnam, Singapore, and Brunei, to enhance competitiveness in the global market. However, to join the TPP, there are many conditions to meet, including the synchronization of Indonesian laws such as the Investment Act, the Law on Business Competition, and the State Finances Law, said the House's Commission VI chairman Achmad Hafisz Tohir.
He said Indonesia is not ready to join the TPP. By joining, Indonesian laws will have to be adjusted with the TPP scheme. "Imagine, our laws will be defeated by the TPP scheme as we would have to comply with it [as a member]."
Achmad highlighted the ratification points on state enterprises that tend to lead to privatization. "The state would have to obey corporates," he said.
Trade Minister Thomas Lembong said Indonesia is still far from joining the TPP. "Even America hasn't ratified it, and the 12 founding nations are still processing it. So, there is still time," he said.
Thomas said the Trade Ministry is still reviewing the impacts of joining the TPP. The logical consideration for joining is to expand Indonesia's market access. "The TPP can regulate fair competition," he said.
When opening the 18th Indonesian Rectors Forum (FRI) in Yogyakarta, last Friday, President Joko Widodo said he will soon make a decision about joining the TPP.
The president said there are risks from either joining or not joining the TPP. He complained about how Indonesian garment products that are exported to the United States are imposed a 15-20 percent duty because Indonesia is not a TPP member, whilst ASEAN countries that have joined the TPP gets a duty-free facility. "How can we compete with them?"
MAWARDAH NUR HANIFIYANI | DEVY ERNIS | ADDI MAWAHIBUN IDHOM (YOGYAKARTA)
