Trade Minister Mari Elka Pangestu said in the trade, the government looked at Turkey as a strategic entry in a custom union (one customs) with Europe. Instead the Turks also have to look at Indonesia not only Indonesia as a single country but ASEAN as a whole. “It was mentioned under OIC existing preferential trade agreement being negotiated to reduce tariffs among OIC countries so they can encourage trade, but it is not comprehensive (not all),” Trade Minister Mari Elka Pangesti at the presidential office after meeting Turkish President Tuesday (05/04/2011). According to Mari, Indonesia exported a lot of rubber, textile products, footwear to Turkey. Meanwhile, Indonesia imported from Turkey the most much oil and wheat flour. “It’s still small and must be diversified. We expect to be enhanced by the existence of investment in both parties,” said Mari.
During this reduction in tariffs through PTA OIC countries is not large but it is an advancement in trade with Islamic countries since the Arab countries are generally put high tariffs.
PTA OIC done to prepare the construction of preferential trade system among the OIC member countries. The aim is to promote trade between OIC member countries through the exchange of preferences on the basis of equality and the treatment nondiskriminatif which include tariff concessions, and non-tariff and enforcement paratarif preference to all commodities, including agriculture, livestock, and industrial.
Director General of International Trade Cooperation (IBC), Ministry of Commerce said Gusmardi Bustami from 56 OIC member countries, which has been ratified only 9 members including Iran, Turkey, Nigeria, Malaysia, Brunei, Saudi Arabia, and United Arab Emirates and others. Ratification is related to a matter which requires the rule of origin can be valid if signed by minimimal 10 countries.
Source : http://businessarea.org/the-government-of-indonesia-and-turkey-agreed-on-the-use-of-preferential-trade-agreement-271661.html - April 5, 2011
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