Jakarta, ID
Monday, May 28 2012, 20:42 PM

National

Chinese products flood Bali market

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Imported products from China have flooded local markets since the implementation of the ASEAN-China Free Trade Agreement (ACFTA) early this year, driving trade and industry officials to strengthen responses of local producers and manufacturers.

Central Bureau of Statistics (BPS) Bali office chief Ida Komang Wisnu said the value of total imported products from China soared to US$1,258,388 in the second quarter of 2009.

The value in the first quarter was less than $450,000.

"By the end of the fourth quarter the value had reached more than $2 million," Wisnu said Friday.

He added most of the imported products were plastic homewares, beauty products, textiles, jewelry and electronic appliances.

"China has always been among the ten countries that makes high-demand products for Bali," he said.

"The countries include Singapore, Hong Kong, France, Korea and Japan.

"With the implementation of ACFTA, the Chinese products are likely to eclipse the products from other countries."

Separately, Bali trade and industry agency head I Gede Darmaja said that determining the exact number of Chinese products distributed in the island would be challenging as Bali was not the main port of entry for the imported goods.

"Bali is the distribution area for the products," Darmaja said.

"The main ports of entry are Tanjung Perak in Surabaya and Tanjung Priok in Jakarta.

"We don't have detailed data on various aspects of the imported products."

Darmaja advised the public to carefully inspect Chinese products before buying them.

"We have to be honest that there are also numerous Chinese products that enter the country illegally as well as products that do not conform with our standards," he said.

"The consumers should be vigilant in dealing with imported products."

The Denpasar trade and industry agency head, Wayan Gatra said that the increasing influx of Chinese products could pose a threat to the local small- and medium-sized enterprises (SMEs).

"*Chinese products* are well-made, have attractive packaging, and are much cheaper than our products."

The SMEs community in Denpasar, Gatra said, was very aware of the threat from the imported products.

The Chinese products have yet to inflict a substantial drop in the SMEs' revenue but these local entrepreneurs would not let their guard down.

"Now the SMEs community are trying to make their operations more efficient, such as by reducing operational costs," Gatra said.

"They do these in the hope that such measures would enable them to cut the prices of their product and to blunt the Chinese products' competitive edge."

The agency has also assisted the SMEs in establishing business associations, which would enable them to launch a joint marketing and promotion strategy, which they otherwise couldn't afford on their own.

"Networking and cooperation are crucial in coping with a more competitive market," Gatra said.