Indonesian textile-export quota increased 29 percent<\/p>\n
JAKARTA (JP): Indonesia's textile-export quota will increase
\nby up to 29 percent this year thanks to quota swaps from
\nSingapore, higher quotas from Europe and the exemption of export
\novershipments last year.<\/p>\n
A statement from the Ministry of Industry and Trade yesterday
\nsaid that discussions between the Indonesian and Singaporean
\ngovernments last month resulted in a quota swap which allowed
\nIndonesia to export an additional 3.34 million kilograms of
\nsheet-textile and 10.06 million garment pieces to the European
\nUnion (EU).<\/p>\n
These allocations, or quotas, initially belonged to Singapore.<\/p>\n
The statement said the European Commission had also allowed a
\n2 percent addition to Indonesia's export quota to the EU, which
\nis equivalent to 2.41 million kg of sheet-textile and 2.6 million
\npieces of garment.<\/p>\n
Last year Indonesia gained exemptions from the overshipment of
\nits textile exports, part of which was done without cutting back
\nexport quotas for this year.<\/p>\n
\"As a result, Indonesia's export quota this year will increase
\nby 29 percent from that in 1996, or about a third of Indonesia's
\ntotal export quota,\" the statement read.<\/p>\n
The Ministry of Industry and Trade distributes export quotas
\nto textile producers who then use them to send exports to the
\ncountries that set the quotas.<\/p>\n
About 60 percent of exports of textiles and textile-related
\nproducts are under quota schemes.<\/p>\n
Yesterday's statement also said the inter-governmental talks
\nlast month concluded that Singapore had no objections to the
\nquota swaps for textile exports to Europe and the United States.<\/p>\n
\"The Indonesian and Singaporean governments have agreed to
\nallocate these EU quotas to companies that need them,\" the
\nstatement said.<\/p>\n
The statement did not disclose what categories of textile
\nexport quotas were given to Singapore in the deal.<\/p>\n
According to the deal, companies receiving the a quota should
\nuse it themselves and not trade it with others.<\/p>\n
In recent years, export quotas have been sold regularly by the
\ncompanies receiving them. Analysts say the high price of the
\nquotas and their uneven distribution by the ministry were among
\nthe reasons the country's textile industry had been lagging.<\/p>\n
The government has vowed to fine those trading the quotas.<\/p>\n
According to the Ministry of Industry and Trade, the value of
\ntextile and textile-related exports increased from $5.9 billion
\nin 1992 to $6 billion in 1993 but fell to $5.6 billion in 1994
\nbefore recovering to $6.2 billion in 1995 and an estimated $6.8
\nbillion last year.<\/p>\n
Yesterday's statement said quota swaps to the U.S. would be
\ndiscussed further because the issue had not been mentioned in the
\nbilateral agreements between the U.S. and Singapore and between
\nthe U.S. and Indonesia.<\/p>\n
A three-party meeting between Singapore, Indonesia and the
\nU.S. was scheduled for this month or next month, the statement
\nsaid.<\/p>\n
Singapore, it said, had agreed for the quota swap to the U.S.
\nto be at least of the same amount as that to the EU, or about 10
\npercent of Indonesia's total textile export quota.<\/p>\n
\"The quota swap, overshipment exemptions and additional export
\nquotas will improve the export performance of Indonesia's textile
\nand textile-related products -- both in terms of volume and value
\n-- to an extent that has never been achieved before,\" the
\nstatement read. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indonesian-textile-export-quota-increased-29-percent-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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