If Not Joining TPP, RI Will Lose Against Vietnam in Shoes Industry

Dian Ihsan Siregar    •    Jumat, 04 Dec 2015 15:01 WIB
If Not Joining TPP, RI Will Lose Against Vietnam in Shoes Industry
BKPM Chief Franky Sibarani (Photo: MTVN/Husen Miftahudin)

Metrotvnews.com, Jakarta: Head of the Investment Coordinating Board (BKPM) Franky Sibarani mentioned that Indonesia is to be left behind against Vietnam, if Indonesia decided not to join the ‎Trans Pacific Partnership (TPP)‎. It is because the exported shoes to the TPP countries will be imposed entry fee as much as 12-15 percent, while the Vietnamese ones will not be imposed anything.
"Due to the fact, then our shoes competitiveness will lose, as imposed with 12-15 percent entry fee. We will lose from Vietnam, as it is not imposed entry fee," he mentioned when met at the BKPM Building, Jakarta, Thursday (12/3/2015).
Currently, Franky admitted that the domestic shoes industry has lost against Vietnam, as well as other industries. Should Indonesia declined to join top, then the competitiveness will be behind Vietnam. 
Entering TPP, he underlined, will not kill the domestic industry. In the agreement, there are rules allowing the member nations to request preparation time for certain products before it goes to the market.
"There are clauses making it possible for the TPP member nations to propose preparation time. For example, Japan, it's farming products may even need 30 years," he mentioned.
During the preparation time, he thinks, Indonesia may arrange the strategy to strengthen its industries, for Indonesia to be able to compete in TPP free market.
Indirectly, TPP also pushes the member nations to improve the industries they owned.
"It is the government's role to boost the industry during preparation time. So TPP is not only a market, but increasing the standard, it is automatic. So there should be no one who is not prepared to step forward to TPP," affirmed Franky.