Govt may cut sporting goods import duties<\/p>\n
JAKARTA (JP): Minister of Industry Tunky Ariwibowo said here
\nyesterday that the government is considering lowering some import
\ntariffs as far as zero percent on raw materials for sporting
\ngoods in hopes of improving the competitiveness of local
\nproducts.<\/p>\n
Acmaddani G-Martha of the Sporting Goods Industry Association,
\nwho met Tunky yesterday, quoted the minister as saying that he
\nwill discuss the possibility of lowering import tariffs on such
\nmaterials with other members of the tariff team.<\/p>\n
After last month's reshuffle the tariff team is now comprised
\nof Tunky, Minister of Trade Satrio B. Joedono and Minister of
\nAgriculture Sjarifudin Baharsjah as members, Coordinating
\nMinister of Industry and Trade Hartarto as chairman and Minister
\nof Finance Mar'ie Muhammad as vice chairman.<\/p>\n
Martha noted that reduced import tariffs will help sporting
\ngoods producers keep the competitive edge following the
\ngovernment's plan to raise local minimum wage levels between 11
\npercent and 35 percent as of April 1.<\/p>\n
\"Our factories are mostly labor intensive and thus we are very
\nsensitive to changes in labor wages,\" he said. \"So, if the
\ngovernment agrees to lower import tariffs like we have proposed,
\nit will offset the burden of our production costs stemming from
\nthe rise in labor wages.\"<\/p>\n
He noted that import tariffs on a number of raw materials for
\nsporting goods are still high, ranging from 30 percent to 40
\npercent.<\/p>\n
According to the director of sporting and educational goods
\nindustries, Sakri Widhianto, there are 68 companies nationwide
\nproducing sporting goods such as balls, rackets, nets, golf
\nequipment, fishing and other water-sports equipment as well as
\narticles for gymnastics and athletics.<\/p>\n
In 1993, Indonesia's exports of sporting goods, excluding
\nsporting shoes, reached US$31 million, 8.25 percent higher than
\nthe previous year. During the January-June period of last year,
\nexports increased by 7.5 percent to $11 million from the same
\nperiod of 1993.<\/p>\n
\"Only 30 percent of the country's total sporting equipment is
\nexported, while the remainder is marketed locally,\" Sakri said.<\/p>\n
Indonesia's imports of sporting goods, however, stood at only
\n$7.7 million in 1993, down 14 percent from the previous year of
\n$8.99 million.(rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-may-cut-sporting-goods-import-duties-1447893297",
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"sponsor": "Okusi Associates",
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