Free Market Motorcycles Start 2012

Central government to take steps to renegotiate the free trade with the Asean-China proposed modification of the 228 tariff heading 11 industry sectors. To make these modifications required compensation other products instead.

The government will give compensation claim as many as 150 postal rates from several other sectors are considered ready, including the automotive sector.

Chairman of the Indonesian Motorcycle Industry Association (AISI) Gunadi Sindhuwinata explained, particularly the automotive sector, a new motorcycle into the implementation of free trade agreements in the year 2018 (the period of High Sensitive List / HSL).

"But because it is considered the industry has been prepared by the government then in-trade off some bike components to Normal Track 2 period (year 2012). A total of 27 postal rate compensated," said Gunadi on the sidelines of ACFTA discussion in Jakarta on Thursday, February 11, 2010.

Gunadi said that the government assess the motorcycle industry was ready for free trade because it is competitive with high economies of scale. National motorcycle production this year is predicted to reach 10 million units, up from last year that only 6 million units.

Facing China's automotive sector is relatively high use of technology can still be competitive. Because the technology between Indonesia and China hardly much different. The problem is, only in the scale of production, China capable of producing greater.

Automotive sector can take advantage of ACFTA to increase investment from China to Indonesia, which will suppress the possibility of downsizing as a negative impact.

Until now, said Gunadi, the automotive industry has absorbed as much as 300 thousand workers.

"By attracting investment from China into Indonesia, it is the fastest way of pressing concern China's flood of imported products, rather than in tariff enforcement delay," he said.