Indonesia is the sixth in competitiveness in ASEAN and it is not encouraging, Hidayat said in a seminar on logistic system here on Wednesday.
He said Indonesian products are relatively expensive compared with the products of other countries in this regions.
The Indonesian products are expensive as the components of the products are also expensive, he said.
Many of the basic materials are still imported making the prices expensive, he said
"Cost of fund, production cost, import cost and poor infrastructure are among the components that make the countrys products expensive," he said.
People will always choose to buy goods cheaper in price if the quality is competitive, he said.
"Our people could not be forced to buy or use local products if the price are more expensive," he said.
He said Indonesia accounts for 50 percent of the population of the 10 country ASEAN.
The big population could make the country more attractive as a potential market destination in the eye of other ASEAN countries, he said.
Therefore, Indonesian competitiveness needs to be improved that the country would not play the role of only as a potential market destination.
He said there will be opportunities as well as threat to be faced in the implementation of the ASEAN Economic Community in 2015.
The industry ministry has prepared a list of Indonesian products, which are also produced in other ASEAN countries, he said.
(T.SYS/B/H-ASG/O001)
Editor: Aditia Maruli Radja
Copyright © ANTARA 2014
