CNN Indonesia
Friday, 04 Aug 2023 20:56 WIB
Zulhas said that the stagnation of Indonesia-EU free trade negotiations meant that nationalism was the culprit for Indonesia’s loss of trade to Vietnam. (CNN Indonesia/Ryan Hadi Suhendra)
Jakarta, CNN Indonesia —
Minister of Commerce Zulkifli Hasan called the stagnation of the Indonesia-European Union until nationalism became the culprit, Indonesia lost trade to Vietnam.
He said Vietnam is smaller and has fewer inhabitants than Indonesia, but the volume of its shoe exports to the European Union (EU) could quadruple.
In fact, Vietnam is in first place in the shoe trade, displacing Indonesia.
According to him, there was a share in the Indonesia-EU-EU Comprehensive Economic Partnership Agreement (IEU-CEPA) which Zulhas claimed had stagnated in 8 years. This means that Indonesian products are still subject to import duties when they arrive on the blue continent, unlike Vietnam, which is free.
“Then I negotiated, what prevented us from finalizing the agreement (IEU-CEPA), one of which was government spending. I asked, ‘Why don’t we want it from the Ministry of Trade? This is, sir, nationalism’. It’s narrow nationalism,” he said in The 40th International Foodwear Conference (IFC) at the Grand Mercure Hotel Kemayoran, Central Jakarta, Thursday (4/8).
“I said, ‘Why are you afraid? Just open the government’s procurement program’. The Ministry of Trade was offered by local businessmen. If you lose to the EU? You won’t lose, just open it! Now we’re OK, open it,” continued Zulhas.
In addition, Zulhas highlighted several State-Owned Enterprises (BUMN) that must meet the domestic component level (TKDN) in commercial business. In the end, the European Union refused to do business with Indonesia.
He said commercial business is different from government assignments. Zulhas emphasized that there was no problem with the TKDN rules for assignments, as long as it is not a commercial business.
On the other hand, President Joko Widodo (Jokowi) has always emphasized ministries/agencies (K/L) to spend state funds on local products, not imported goods. In fact, Jokowi threatened to cut the budget of recalcitrant ministries/institutions that did not comply.
Deputy for Tourism and Creative Economy at the Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves) Odo RM Manuhutu said this threat would be included in the reward and punishment scheme.
“Reward and punishment was the direction of the President (Jokowi) at the last business meeting. Currently it is in the final stage, where with the Financial and Development Supervisory Agency (BPKP), one of the things we have created is a compliance index for spending on domestic products,” he explained in Ministry of Finance’s Dhanapala Building, Central Jakarta, Friday (28/7).
“One of the suggestions is for ministries/agencies that do not buy domestic products, the budget will be reduced. Of course this is quite controversial,” added Odo.
(skt/dzu)
2023-08-04 13:56:48
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