ACFTA worsens unemployment: INDEF
The Jakarta Post | Thu, 01/28/2010
ACFTA worsens unemployment: INDEF
Institute for Development of Economic and Finance (INDEF) director M. Ikhsan Modjo said that ASEAN-China Free Trade Agreement (ACFTA) would likely increase economic growth but worsen its quality, with increasing unemployment.
“Unemployment would rises, causing a significant gap (between the rich and the poor),” said Ikhsan in Jakarta, on Thursday.
INDEF predicted that Indonesia’s economic growth would increase to 5.3 percent, as compared to 4.5 percent in 2009.
The free trade has been showing a good mark in term of international trade, but a negative sign for industry, especially manufacturing.
“This kind of situation is known as de-industrialization. We have nine labor-intensive industries affected by the free trade,” said Ikhsan, as quoted by Antara.
Ikhsan added that around 1 million people might lose their job because of ACFTA. (nkn)
