The ASEAN-China free trade agreement, which took effect Jan.1, will threaten the domestic textile industry players, because the Chinese goods are far cheaper than local products.
“For instance, we can sell a finished Chinese-made item for Rp 65,000 [US$7], but for that price we can only sell the raw material of a similar local product,” Asril, a trader at Tanah Abang Market, said as quoted by kompas.com.
He added traders would continue to sell Chinese-made products for that very reason.
The ASEAN-China FTA applies to China, Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand.
In 2015, the FTA will also extend to Cambodia, Laos, Myanmar and Vietnam.
