What impact has the FTA with China had on the region?
It was ASEAN’s first FTA. There are concerns now of growing trade deficits [$21.6 billion last year] with Chinese goods flooding the market. What Indonesia has seen is our trade has more than doubled from around $13 billion in 2005 to almost $30 billion in 2008 before the crisis [India’s trade with Indonesia last year was $11 billion]. China has also become our largest source of imports, from about 10 to 12 per cent to around 18 per cent. We agreed with the Chinese side as to what concrete steps we can take to reduce the anxiety [over the deficit] and potential concerns of some sectors. By and large, both sides agreed there have been benefits, but there are a few sectors facing problems, particularly small and medium enterprises. Some ASEAN countries, particularly those neighbouring China, have voiced concerns in recent months about what they say is China’s increasing assertiveness in the South China Sea. Indonesia, of course, is not a party to the political dispute. But does politics
