Indonesia must improve the quality of its products in order to prepare for regional rivalry when the ASEAN Economic Community (AEC) begins in 2015, says Industry Minister MS Hidayat.

“If we do not improve the quality of our products immediately, then we will not be able to compete with foreign products entering the domestic market,” Hidayat said in Jakarta on Wednesday as quoted by Antara news agency.

He said that Indonesia made up 50 percent of the entire ASEAN population, making it a large market for regional goods to enter.

“A lot of foreign products will enter the market and customers will only buy the high-quality ones,” he added.

The minister also said that industries must strategically maintain the domestic market while also attempting to enter foreign markets to secure the future of Indonesian goods.

Indonesia’s industrial trade balance has suffered a deficit for the last five years, which has been exacerbated by rising import rates and declining export numbers.

In the last five years, exports of Indonesian goods only increased by 10 percent on average, compared to the 16 percent increase in imports.

The Industry Ministry plans to implement an aggressive export strategy for several industries, such as agriculture, in preparation for the AEC in 2015 and the planned global free market in 2020.

According to the ASEAN Secretariat, the AEC envisages the key characteristics of the community as: a single market and production base; a highly competitive economic region; a region of equitable economic development; and a region fully integrated into the global economy.

The plan would allow people in the region to enjoy healthy gross domestic product (GDP) growth and progressive competitiveness, as well as welcoming a free flow of goods and services from the region.

Source : JakartaPost