Jakarta – The common effective preferential tariff (CEPT) adopted by ASEAN countries does not provide any real benefit to Indonesian industries, but amplifies the trade balance deficit, according to an Industry Ministry official.
Agus Tjahajana, the director general for international industry cooperation at the Industry Ministry, said on Friday as quoted by Kompas.com that ASEAN trade trends show that the lower import tariff increased Indonesia's trade balance deficit.
In 2010, the trade deficit reached US$5.6 billion, up from $3.1 billion a year before. "The facts show that Indonesia's industrial products did not benefit from ASEAN CEPT," Agus said.
In 2009, there were 1,810 products subjected to the import tariff. A drastic reduction occurred in 2010, as only 84 products were subject to the tariffs. Under CEPT, import tariffs for ASEAN countries varied between 0 and 5 percent.