Thailand objects to RI measures

Lilian Budianto, THE JAKARTA POST, Cha-Am, Thailand | Sat, 02/28/2009 11:12 AM  

Thailand's commerce minister raised Friday objections during the 14th ASEAN Summit about a new Indonesian regulation that restricts imports in five key cate-gories to five ports only 

"We have raised the issue of restrictions on imports to Indonesia's trade minister *Mari Elka Pangestu* at our bilateral meeting just now, with concerns that this could affect our bilateral trade," said Thai Commerce Minister Porntiva Nagasai during a press conference. "Minister Mari has told me that she would look into this matter soon." 

The Indonesian Trade Ministry issued a regulation late last year to control imports of food and beverages, textiles and garments, footwear, electronics and children's toys. 

Under that ministry regulation, imports of goods in these categories may only enter the Indonesian market through Belawan Port in Medan, North Sumatra, Tanjung Priok Port in Jakarta, Tanjung Emas Port in Semarang, Central Java, Tanjung Perak Port in Surabaya, East Java, and in Makassar, South Sulawesi, as well as all international airports. 

Imports of food and beverages, meanwhile, may also enter through Dumai Port in Riau. Imports through ports other than those named will be declared illegal. 

Mari said the regulation was imposed to crack down on illegal products. It has raised objections from several countries, including the United States, which deemed the measure "protectionism". US Ambassador to ASEAN Scot A. Marciel said recently that Washington would also discuss the new regulation with Indonesia. 

Porntiva did not mention how significant the impact of the restrictions had been to Thai exports to Indonesia. Thailand exports automotive parts and food products to ASEAN countries. Krisda Piampongsan, spokesman for the Thai Commerce Ministry, said that although the ministry had yet to be provided with complete data on how bad the impact was on the local industry, "it put significant pressure on Thai exports to Indonesia". 

"We are an exporter of almost 500 items stated in the list of products affected by the regulation," he said. 

Mari said Indonesia also expressed concern about a number of "protective" measures by the Thai government that had affected Indonesian exports to the country. 

"They have got their own issues and so do we. We are in discussions to address all those problems," she said. 

Indonesia and Thailand have both agreed to boost trade and investment in the automotive, fisheries and halal food product sectors in a bid to increase trade among ASEAN members at a time when exports to the bloc's main trading partners of the United States and Japan are on the decline, thanks to the global finance crisis. 

Indonesian exports to Thailand stood at US$3.2 billion in the first 10 months of 2008 and its imports from Thailand were at $5.5 billion. 

ASEAN member states have taken their own measures to protect their domestic markets, including Thailand, which has called on people to use cash initiatives to buy local products. Indonesian Industry Minister Fahmi Idris also recently called on the country's civil servants to buy local products in a ministerial decree that will be issued in the near future amid shrinking export demand.