He said the "most serious impact" would fall on the steel, textile, inorganic chemical, furniture and energy-saving lamp industries, and called for the pact to be renegotiated to shield such sectors from Chinese competition. "If there aren't any protective steps taken for these industries we're afraid that there will be ... layoffs and even the closure of those industries," he said.
But in a sign of the tensions within the government of President Susilo Bambang Yudhoyono, Hidayat told reporters outside parliament he was "not allowed" to give estimates of potential job losses. Meanwhile Trade Minister Mari Pangestu defended the deal, saying it was good news for Indonesian exporters to China and would bring badly needed foreign direct investment from Chinese firms.
She spoke vaguely about benefits arising from "strategic alliances" and "technology transfers" between Asean and China. But she also said the government was communicating with Asean to "find a win-win solution that's best for national interests" after some local industries expressed concerns about a flood of cheap Chinese imports. Pangestu and Foreign Minister Marty Natalegawa have said Indonesia is committed to abiding by its international agreements under the Asean-China FTA.
The industry ministry backs a delay to full liberalisation on 228 tariff lines for another two years but it is unclear whether the government has formally made any such request to Asean. Asean chief Surin Pitsuwan told reporters in Vietnam last week that Indonesia had expressed "difficulties" but there had been "no appeal for any change or any renegotiation" of the pact. Under the pact, China and the six founding Asean states - Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand - agreed to eliminate barriers to investment and tariffs on 90 percent of products by January 1, 2010.