RI, China urged to settle trade dispute

The Jakarta Post ,  Jakarta   |  Thu, 08/09/2007 12:55 PM  |  Business

Abdul Khalik, The Jakarta Post, Jakarta

Indonesia and China should settle their trade dispute and start building synergies instead through trade cooperation that would benefit both countries, says a business leader.

Achmad Safiun, the deputy chairman of the standing committee of the Indonesian Chamber of Commerce and Industry (Kadin) told the Indonesia government and the private sector to prudently handle the recent trade dispute between Indonesia and China.

""Both countries shouldn't put each other down. They, together, could become more economically powerful by building synergies,"" he said Wednesday in response to the Chinese government's decision last week to ban the importation of seafood from Indonesia.

The ban followed an earlier ban imposed by Indonesia on Chinese candies found to be contaminated with formaldehyde. The Chinese ban was then followed by Indonesia's banning earlier this week of 42 other candies and 26 cosmetic products from the country for containing hazardous substances.

Indonesian Ambassador to China Sudrajat said in Beijing that the dispute between the two countries was only a ""technical problem"" and that there was no hidden agenda behind the ban.

""This is simply caused by technical problems and these often arise in international trade,"" he said as quoted by Antara.

According to Sudrajat, both countries have the right and responsibility to protect their people from hazardous substances by scrutinizing imported products and banning those considered unsafe.

Sudrajat added that Indonesian seafood was not the only product banned by the Chinese government. It had also imposed bans and restrictions on food and drug imports from a number of developed nations, including the United States, Germany and some other European Union countries.

Meanwhile, Indonesia announced Wednesday that it would send a delegation this week to Beijing to try to persuade the Chinese government to lift the ban.

""We will hold a meeting tomorrow with officials from other relevant ministries and business associations to prepare for the talks in Beijing later this week,"" Fisheries and Maritime Affairs Ministry spokesman Saut P. Hutagalung told The Jakarta Post.

He said that although Indonesia had yet to receive formal notification from the Chinese government about the ban, it had decided to be proactive in attempting to resolve the problem quickly as many firms across the country had complained that their Chinese counterparts had canceled their orders, resulting in millions of dollars in losses.

""This is the time when exporters send their products to the buyers, so many firms are currently packing their goods. Because the orders are so specific, they can't switch their products to other buyers. We must act quickly,"" Saut said.

He added that during a meeting between Indonesian and Chinese quarantine officials Tuesday, the Chinese officials had expressed their readiness to receive an Indonesian delegation in Beijing to find a way to resolve the problem.

""I heard also that the ban includes not only Indonesian seafood products but also other products, ranging from palm oil and canned food to biscuits,"" he said. (11)

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