Cable Industry Optimistic ASEAN Free Trade Deal

Jakarta-As preparations for the ASEAN Economic Community in 2015, Vice Minister of Commerce visited the factory wiring Krisnamurthi PT Supreme Cable Manufacturing Commerce (Sucaco) Tbk. Wires and electronic equipment is one sector which is set by default in the free trade in the region.
“It turns out we are ready to face competition because the company is apparently one of the best in ASEAN,” said Bayu at the factory Sucaco in Daan, West Jakarta, Monday, July 29, 2013. Factory covering an area of ​​14 haktare was already 41 years old and is one of the oldest cable factory in Indonesia.
According to Bayu, PT Sucaco been exporting its products to Japan and other countries in the Middle East are taking a higher standard of ASEAN. However, exports are now stalled because the domestic market absorbed all of its products.
As the economy grows, the need for cables and equipment in the country is growing. This additional requirement apparently was overtaken by the domestic industry in which the culprit was more than 100 companies.
As a result, Indonesia’s trade balance was a deficit of electronic products. Last year for example, the Central Bureau of Statistics noted that the export cable and electronic products only reach U.S. $ 7 billion, while imports reached U.S. $ 15 billion.
Jamallulail Noval, Chairman of Cable Manufacturers Association (Apkabel) states, the main obstacle in the cable industry is the issue of raw materials. Although Indonesia is producing copper and aluminum, but in fact the cable industry still has to import both these metals. “Because here there is no industry median, so it should be processed beyond the first,” he said.
Another problem, the import of raw materials seengah so it turned out to be between 10-15 per cent import duty. “It’s somewhat reduces our competitiveness for export markets,” said Noval.

Electronics Industry Ready to Face the AEC 2015

Deputy Trade Minister Bayu Krisnamurthi said that the cable industry and electrical appliances Indonesia has been prepared for the ASEAN Economic Community (AEC), which will start rolling by the end of 2015.
“This company is one of the best in ASEAN, and their products have met the standards, so as to believe elektrikalkami Indonesian production is able to compete on the MEA,” Bayu said during a visit to PT Supreme Cable Manufacturing Commerce on Monday.
Bayu said that, to date, produced kebel and tools elekrik in Indonesia is not intended for export out, because domestic demand is very high.
“Nationally, we see a deficit position our balance sheet for electrical, but it is not because we are not competitive, but more because domestic demand is very big,” said Bayu.
According to Bayu, export data from Indonesia in 2012 and, for electrical products exported only $ 7 billion U.S. dollars, exports to ASEAN and to only 2.6 billion U.S. dollars.
Bayu explained, for the import of electrical products in 2012 reached 15 billion U.S. dollars, but the high is not only for imports but including also the cable inside the generator and some tools that are not produced in Indonesia.
“When viewed in the industry, the number of cable industry there are approximately 25 companies, and about five or six companies are quite large, and overall I’m sure they are ready,” said Bayu.
The visit aimed to review the readiness of Indonesia to enter the AEC industry which will start up in late 2015, in particular for power tools sector.
Electrical and electronic equipment sector is one sector that is discussed in ASEAN Consultative Committee on Standards and Quality (ACCSQ).
Indonesia itself has ratified trade agreements electrical and electronic equipment in ASEAN through Presidential Regulation No. 79/2010 on the ratification of Agreement on the ASEAN Harmonized Electrical and Electronic Equipment Regulatory Regime