Exporters complain of high costs and delays<\/p>\n
JAKARTA (JP): Small and medium-size exporters complained
\nyesterday to Minister of Industry and Trade Tunky Ariwibowo about
\nthe high costs plaguing their businesses.<\/p>\n
They complained of unfair textile quota allocations,
\ninappropriate value-added taxes on commodities and sharp
\nincreases in mandatory forestry royalties.<\/p>\n
They also complained about delays in refunding import duties
\nand taxes paid on imported raw materials for export goods and
\nunreasonable customs penalties and unnecessary licensing.<\/p>\n
"How can we make our businesses competitive if we always face
\nproblems in dealing with officials at all levels of the
\nbureaucracy," an electronics businessman said at yesterday's
\nmeeting with the minister.<\/p>\n
The meeting was held at the Jakarta Fair ground to coincide
\nwith the Export Product Exhibition 1996.<\/p>\n
The businessman complained that officials often extorted money
\nfrom companies by holding back letters verifying a company's
\ndomicile, which must be renewed once a year.<\/p>\n
He also complained that it took ages to get refunds for import
\nduties and taxes on raw materials used to produce exports.<\/p>\n
"When we want to get a refund, it is so difficult. And the
\nofficials are usually unfriendly, even though the money is ours,"
\nhe said.<\/p>\n
A textile-exporting businesswoman complained about the customs
\nregulation on fines, which stipulates that if an error is made on
\nexport documents the subject could be fined between Rp 1 million
\n(US$425) and Rp 10 million.<\/p>\n
"Once I made a mistake in filling out the forms, and I had to
\npay Rp 1 million for the mistake although my exported goods were
\nworth only US$3,500," the businesswoman said.<\/p>\n
Responding to the complaint on customs fines, Minister Tunky
\npromised to take the problem to the Ministry of Finance, which
\nsupervises the Directorate General of Customs and Excise.<\/p>\n
Textile quotas<\/p>\n
A textile exporter said the allocation of quotas for textile
\nexporters was inefficient, arguing that some of the quotas go to
\nnon-textile producers who sell them to those who need them.<\/p>\n
Hearing the complaint, Tunky promised to improve the
\nallocation of textile quotas and invited the exporters to report
\nto his office to ensure that the quotas go to those who really
\nneed them.<\/p>\n
Another businessman complained that the government-imposed
\nvalue-added tax on several commodities had reduced the
\ncompetitiveness of local agro-industries, whereas the commodities
\nwent untaxed in other countries.<\/p>\n
"I agree with you that primary agricultural produce should not
\nbe taxed. I promise to bring the matter to the Minister of
\nFinance who has the authority to review the taxes," Tunky said.<\/p>\n
The meeting was scheduled for last Wednesday morning but was
\npostponed until yesterday because the minister had "an important
\nmeeting at his office," said an official from the Ministry of
\nIndustry and Trade. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/exporters-complain-of-high-costs-and-delays-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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