“I think we will both apply the ACFTA as scheduled,” Chinese Trade Minister Chen Deming said as quoted by Antara on Saturday at a press conference after the 10th Indonesia-China Joint Commission meeting in Yogyakarta.

With first phase of implementation of the ACFTA earlier this year, the government effectively scrapped 6,682 tariff lines in 17 sectors, including 12 in the manufacturing sector and five others in the agriculture, mining and maritime sectors.

Affected businesses, facilitated by the Industry Ministry, requested the government postpone 228 tariff lines. Under the agreement, now 90 percent of all tariff posts in both countries have been eliminated.

“China has reduced 7,000 of its tariff posts to 0 percent,” Deming said.

In particular, small and medium business entrepreneurs might be facing difficulties with the implementation of the ACFTA, he said.

Consequently the Chinese government was willing to help Indonesia improve Indonesian SMEs’ competitiveness, Deming said.

He also said China would help improve Indonesia’s logistics, machinery and investment promotion efforts.

In response to the Chinese government’s offer of assistance, Indonesian Trade Minister Mari Elka Pangestu said the solution would “be more beneficial to Indonesia”.

Mari said Indonesia and China had also agreed to keep their two-way trade balanced, sustainable and profitable.

During the meeting, Mari and Deming also signed “Agreed Minutes of The Meeting for Further Strengthening Economic and Trade Cooperation”.

“The agreement contains steps the two countries will jointly take to settle problems faced by certain sectors as a result of the implementation of the Asean-China Free Trade Area [ACFTA],” Mari said.

She said the latest agreement was made in response to concerns raised by domestic manufacturers.

The two countries also agreed to sustain the growth of bilateral trade, she said.

“In case of a trade imbalance, the party that enjoys a surplus is obliged to take steps including boosting imports and providing support,” Mari said.

Indonesian Iron and Steel Industry Association (IISIA) deputy chairman Edward Pinem, Indonesian Footwear Association (Aprisindo) secretary-general Binsar Marpaung and Indonesian Textile Association (API) secretary-general Ernovian Ismy agreed that a failure to have ACFTA renegotiations meant “more hard work by the government to help businesses improve their competitiveness”.

Similarly, Yogyakarta-based Gadjah Mada University economist Sri Adiningsih said the was government to blame for “not preparing all necessary areas [upon implementation of the ACFTA], even after five years”.

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