Kadin Hope Indonesia-Middle East to Have Free Trade Agreement

Jakarta, (Antara) - The Indonesian Chamber of Commerce and Industry (Kadin) hopes that Indonesia seriously seeks to have free trade agreement (FTA)  with Middle east countries to boost exports to that region.

"We strongly hope that our government  and Middle East governments have free trade agreement. So far have we have none that  Indonesian goods  are slapped with high import tax in that region," Chairman of the Permanent Committee for Middle East and the Organization of Islamic Cooperation (OIC) of Kadin  Fachry Thaib said here on Thursday.

He said even with high import tax, exports to that region have continued, adding under free trade agreement, trade  would be much brisker.

The business sector urged for the free trade agreement as soon as possible, he said.

"Indonesia should be more aggressive in its trade approach with  Middle East that we do not continue to be lagging  behind," Fachry told reporters in a news conference.

Indonesia has been lagging behind other ASEAN countries such as Malaysia, Thailand and Singapore, in expanding trade with China.

"Even Vietnam already has free trade agreement with Middle East. I don't understand why we should not have," he said.

He said Palestine also hopes for export and import tax facility, adding the Foreign Ministry  had responded positively to the hope for the export and import facility.

"The Foreign Ministry and the Finance Ministry would discuss that matter. The Palestinians themselves find it strange as even the United States and Europe already gave tax facility. Being brothers we should be the first (to offer the facility," he said.

He said trade between Indonesia and Palestine was valued only at US$9 billion a year.

"Imports from that country are only olive oil and marbles. There should not be slapped with tax. We just give that facility considering it as an assistance," he said.

Indonesia exports palm oil, paper, furniture , food products, medicines,  and medical equipment to Palestine.

Indonesia, the world's largest Muslim country, has always supported Palestine politically against Israeli occupation of the West Bank.(*)