VIVAnews – The Indonesian Chamber of Commerce (Kadin) urged the government to delay the signing of the free trade agreement (FTA) which is still under further discussion and waiting the draft bill on trade to be passed into law.
Several signed FTAs were allegedly seen as not having strong legal basis, and are based only on related ministries.
Meanwhile, the trade draft bill has yet to be discussed since 2004.
Kadin Deputy Head of Logistics, Trade and Distribution Benny Soetrisno said that Indonesia’s trade mechanism still adopts the trade law from the Dutch colonial period, which is used as the principles of any agreement.
“[In the Dutch colonial period] electronic mail system did not exist, and since the legal basis is ancient, most of the agreements [are made] using theoretical approaches. Therefore, the unsigned FTAs must be postponed until the trade draft bill is passed into law,” Soetrisno said in Jakarta on Wednesday, Nov. 11.
Kadin also suggested that the government reviews all FTAs and delay the new FTA legalization before formulating an adequate agreement to avoid loss in the national trade.
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Translated by: Ariyantri E. Tarman
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