On Monday, a Indonesian trade official stated that Indonesia may submit a formal application to the Southeast Asian region to postpone some of the tax reductions in China’s free trade agreement.

The agreement signed between China and 10 ASEAN member countries constitutes a US$200 billion trade zone, affecting 1.9 million people, forming the world’s largest trade agreement area in terms of population, and forming the third largest trade in the world from the scale of trade. District, second only to the European Union and the North American Free Trade Area.

The agreement should help China securely obtain raw materials and open new markets from its huge neighboring ASEAN countries. The agreement was first signed in 2002 and covers approximately 7000 product categories. The agreement came into effect this year.

However, Indonesia complained that the departments such as textiles and clothing have great resistance. After the agreement comes into effect, cheap Chinese imports can easily threaten local industries.

Iman Pambagyo, director of the Trade Regional Cooperation Department of the Indonesian Ministry of Trade, said that Indonesia is considering the possibility of some departments delaying the implementation of the agreement.

Paymbagyo said that ministers are discussing this issue and will soon submit it to the president. The cabinet will make a decision in January.

According to the agreement, Indonesia, Malaysia, Brunei, the Philippines, Singapore, and Thailand must reduce tariffs on about 90% of imported goods to zero-tariff by 2010. Laos, Vietnam, Cambodia and Myanmar will make cuts in 2015.