Ministry urged to boost exports<\/p>\n
JAKARTA (JP): President Soeharto yesterday urged industry and
\ntrade officials to help boost exports and curb imports, without
\nintroducing limitations.<\/p>\n
\"The Ministry of Industry and Trade needs to strengthen its
\nrole of coordinating institutions that involve exports. One
\nimportant thing is to promote our goods rapidly,\" Soeharto told
\nthe officials, who made a courtesy call on the President after
\ncompleting a five-day consolidation meeting.<\/p>\n
The meeting was made following the merger between the trade
\nand industry ministries.<\/p>\n
The President said non-oil exports must be increased because
\nof steadily growing imports.<\/p>\n
\"What is equally important is to control imports. But this is
\nnot to be done through bannings or limitations but through
\npolicies which are well-planned, integrated and clear,\" he
\ncontinued.<\/p>\n
Supporting Soeharto's statement on the urgent need to limit
\nimports, Minister of Industry and Trade Tunky Ariwibowo noted
\nthat it should be pursued carefully.<\/p>\n
\"Efforts to limit imports should be made in line with the
\nrules set by the World Trade Organization (WTO),\" he told
\njournalists after the meeting. \"We cannot just ban imports. There
\nare ways that are not against the WTO's rules.\"<\/p>\n
One of the ways to curb imports, Soeharto said, is to
\naccelerate the development of upstream industries, supporting
\ndomestic industry.<\/p>\n
Soeharto expressed concern over the sharp growth of imports
\nand the slowing down of export growth, which he said was caused
\nby rising competition in the world market, not weakening demand.<\/p>\n
Indonesia's total exports grew by 13.4 percent to US$45.42
\nbillion last year from $40.05 billion in 1994, while imports
\nsoared by 27 percent to $40.66 billion from $30.98 billion.
\nConsequently, last year's trade surplus fell by 41 percent to
\n$4.75 billion from $8.07 billion in 1994.<\/p>\n
The declining trade surplus has caused the widening of the
\ncountry's current account deficit, which is projected to reach
\n$7.9 billion this fiscal year, ending this month, as compared to
\n$3.49 billion last fiscal year.<\/p>\n
Globalization<\/p>\n
The President said Indonesia needs to become more open and
\nprepared to cope competitively with economic globalization.<\/p>\n
With such a global market, on the one hand, there are ample
\nopportunities for Indonesia to tap foreign markets. On the other
\nhand, Indonesia could become a dumping ground for products from
\nother countries.<\/p>\n
\"That's why we have to be competitive both in foreign and
\nlocal markets,\" Soeharto said.<\/p>\n
He vowed that the government will continue deregulation
\nmeasures and cut red tape to improve the competitiveness and
\nefficiency of the country's economy.<\/p>\n
\"We have to take all necessary efforts so that Indonesian
\nbusiness people can expand their businesses here and foreign
\nbusiness people feel that doing business here is cheaper than
\ndoing business elsewhere,\" he said.<\/p>\n
He noted that deregulation is required to scrap unnecessary
\nbureaucratic obstacles and stimulate innovation and creativity in
\ndoing business.<\/p>\n
\"To boost our export growth, we have to scrap all unnecessary
\nobstacles and drop all levies which have no connection with
\nproduction,\" Soeharto said.<\/p>\n
The President also said that Indonesia needs to diversify its
\nexport markets, simplify export distributions and widen its
\ninternational trading network. \"If necessary, work together with
\nprivate domestic companies or international companies.\"<\/p>\n
The task is especially urgent for state-owned trading
\ncompanies, he continued.<\/p>\n
Tunky told journalists after the ceremony that the government
\nis considering the possibility of merging state-owned trading
\ncompanies as they will be charged with special tasks.<\/p>\n
\"We'll study them all. And after that we'll decide whether to
\nmerge them or set up a holding company for them,\" Tunky said.<\/p>\n
Before being merged into the ministry of industry and trade,
\nthe ministry of trade used to have several trading companies,
\nincluding PT Pantja Niaga, PT Kerta Niaga, PT Aduma Niaga, PT
\nDharma Niaga, PT Mega Eltra, PT Sucofindo and PT Sarinah
\nDepartment Store.<\/p>\n
Tunky said that there are too many such companies.<\/p>\n
\"The companies' activities are focused more on imports of
\nvarious goods. But in the future they will be asked to promote
\nexports,\" explained Tunky.<\/p>\n
Soeharto told the industry and trade officials to help
\nmaintain strong growth in industry and trade.<\/p>\n
He also urged them to make use of domestic consultants'
\nservices in the fields of technology, management and marketing,
\nwhich so far still rely too much on foreign personnel.<\/p>\n
\"Strong consultancy services, supported by qualified research
\nand product testing institutions, will strengthen industry and
\ntrade for the future,\" Soeharto said. (13\/rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ministry-urged-to-boost-exports-1447893297",
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