Paper work set government back $7.2 billion last year<\/p>\n
JAKARTA (JP): Indonesia's foreign trade documents cost over
\nUS$7.2 billion in 1994, or 10 percent of the total value of the
\nyear's exports and imports of US$72.03, an advisor said
\nyesterday.<\/p>\n
\"I think the cost would (turn out to) have been more than 10
\npercent of the foreign trade value if we studied the
\ndocumentation process more thoroughly,\" Chief Technical Advisor
\nof the United Nations Development Program R.N. Shivpuri told
\nreporters at a press conference.<\/p>\n
Shivpuri, who is also a consultant to the National Trade
\nFacilitation Program of the trade ministry, said that the cost of
\npaperwork is projected to increase in absolute terms this year to
\n$8.54 billion this year because of an expected increase in the
\ntotal export and import value to $85.47 billion.<\/p>\n
\"The high cost of paperwork has been caused by too many
\ndocuments, time-consuming procedures and other factors, such as
\ncorrupt practices,\" he said.<\/p>\n
He said that there are 121 documents currently in use in
\nIndonesia, generated by exporters, importers, banks and
\ngovernment departments.<\/p>\n
\"The excessive documentation required for both import and
\nexport of goods has grown to such proportions that it is a
\nserious impediment to the healthy expansion of overseas trade,\"
\nShivpuri said.<\/p>\n
He said the number of documents in use would be reduced from
\n121 to 11 under a program called the Aligned Documentation System
\nof the United Nations.<\/p>\n
The reduction in the number of documents will also reduce the
\ntime spent by exporters in filling out the forms from six hours,
\nat present, to 45 minutes, he said.<\/p>\n
\"Most European countries have been able to reduce the cost of
\npaperwork from 10 percent to four percent by using the Aligned
\nDocumentation System,\" he said.<\/p>\n
He said that state-owned company PT Sucofindo had been
\nassigned to promote the use of standard trade documents and to
\nencourage the adoption of the Aligned Documentation System by
\nIndonesian exporters.<\/p>\n
He said that most importers and exporters had responded
\npositively to information presented to them about the program.<\/p>\n
He acknowledged that the program might be rejected by many
\ngovernment departments which have their own rules or documents,
\nbut said that the program was needed to improve efficiency.<\/p>\n
He said that the National Trade Facilitation Team would not
\ncall upon government institutions to implement the program but
\nonly to standardize their procedures.<\/p>\n
\"A one-roof system is our ultimate goal,\" he said.<\/p>\n
Indonesia now has 30 institutions handling trade documents.
\nMalaysia, the Philippine and Singapore have, respectively, 21, 35
\nand 15 such institutions.<\/p>\n
The chairman of the team, Bakir Hasan, said that all parties
\nshould support the program in preparation for the free trade era.<\/p>\n
\"We need three to five years to promote the program, starting
\nthis year. Other countries took about 17 years,\" he said.<\/p>\n
Bakir, who is also the Secretary General of the Ministry of
\nTrade, conceded that his ministry had no power to compel
\nparticipation in the program. (04)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/paper-work-set-government-back-72-billion-last-year-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}