East Java to Apply non-Tariff Barrier to Face AEC

Surabaya, E Java (Antara) - The East Java provincial government will apply a non-tariff barrier (NTB) system to protect local products against an onslaught of foreign goods when the ASEAN Economic Community (AEC) takes effect in 2015.

The system is aimed at protecting the products and competitiveness of local industries so the domestic market will not become a target of foreign products, East Java Governor Soekarwo said here on Monday.

"NTB is non-tariff rule capable of impeding the glut of foreign products to the domestic market. The barriers include technical conditions that a certain product must meet before being marketed in Indonesia," he said.

In this regard, the local government has issued bylaws in the health and education sectors, he said.

"One of the points of the health bylaw is that all doctors wishing to work in East Java must pass a tropical disease test. And one of the points of the education bylaw is that all teachers must master local contents," he said.

In essence, AEC is a single market and a regional production basis. The single market will facilitate the creation of joint venture companies in the Southeast Asian region, he said.

"In addition, the single market will create several free accesses, including free flow of goods, free flow of services, free flow of investment, free flow of capital and free flow of skilled workers," he said.

Therefore, comprehensive development is needed to create a competitive economic area, he said. (*) Reporting by Indra Setiawan (*)