Thailand and Indonesia object each other over ‘protective’ measures

Last Friday, Thailand’s commerce minister Porntiva Nagasi raised objections about a new Indonesian regulation during the 14th ASEAN Summit. The regulation restricts imports in five key categories of food and beverages, textiles and garments, footwear, electronics and children’s toys to five ports only which are Belawan Port in Medan, North Sumatra, Tanjung Priok Port in Jakarta, Tanjung Emas Port in Semarang, Central Java, Tanjung Perak Port in Surabaya, East Java, and in Makassar, South Sulawesi, as well as all international airports.

“We have raised the issue of restrictions on imports to Indonesia’s trade minister, Mari Elka Pangestu, at our bilateral meeting just now, with concerns that this could affect our bilateral trade.Minister Mari has told me that she would look into this matter soon,” said Mr. Nagasai.

Mari said the regulation was imposed to crack down on illegal products adding that even Indonesia was concerned about a number of “protective” measures by the Thai government that had affected Indonesian exports to the country.

“They have got their own issues and so do we. We are in discussions to address all those problems,” she said.

Indonesia and Thailand have both agreed to boost trade and investment in the automotive, fisheries and halal food product sectors in a bid to increase trade among ASEAN members. Indonesian exports to Thailand stood at US$3.2 billion in the first 10 months of 2008 and its imports from Thailand were at $5.5 billion.