Indonesia has suffered a trade deficit of US$1.33 billion in 2012, the largest ever, Fadli Zon, the secretary general of the association said here on Wednesday.
"This is the first time in the country ever suffering a big trade deficit," Fadli said, adding, "even at the height of the crisis in 1997-1998 the country still posted a surplus."
The deficit was caused by shrinking exports with imports surging, he said.
The Central Bureau of Statistics said that the country`s exports shrank 4.6 percent and imports rose 9.92 percent in 2012.
Therefore, the government should take a strategic step to end the deficit such as by slapping import restriction on horticulture products, oil and capital goods.
"So far we have adopted a liberal trade system while we are not yet ready to face open competition in the market. As a result Indonesia has become the market for foreign commodities," he said.
He predicted that unless drastic measure was taken the country will still suffer trade deficit in 2013.
"Indonesian exports are estimated to grow 9.22 percent but imports are expected to grow by a higher rate of 9.24 percent, he said.
He also called for restriction on imports of industrial basic materials already available in the country .
Imports of industrial basic materials were valued at Rp313.2 trillion in 2012 exceeding the target of Rp283 trillion.
"Investment has always been followed with an increase in the imports of industrial basic materials, resulting in trade deficit," he said.
He urged the government to evaluate the procedure of investment and free trade, saying the free trade system has caused the country more losses than gains.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2013
