RI may use Mexico as its 'beachhead' to export textiles<\/p>\n
JAKARTA (JP): Indonesia could use Mexico as its "beachhead" to
\npenetrate North and Latin American textile markets.<\/p>\n
Mexican Ambassador to Indonesia Jorge Palacios said here
\nyesterday that Indonesia can export more textiles to his country.<\/p>\n
"You can export your batik, for instance, to our country and
\nthen we will tailor them and export them to the United States as
\nMexico's exports," Palacios said in a presentation organized by
\nthe World Trade Center (WTC) Jakarta.<\/p>\n
In accordance with the WTC Association's spring meeting in
\nMexico next month, WTC Jakarta will bring a trade mission to that
\nLatin American country to promote trade cooperation.<\/p>\n
Palacios noted that trade between Indonesia and Mexico is
\nincreasing, although the size is still very small. Two-way trade
\nrose 110 percent in 1993 to $313 million, of which Indonesia
\nenjoyed a surplus of $79 million.<\/p>\n
He noted that Indonesia can benefit greatly by exporting its
\ntextiles to Mexico. Mexico has a special trade relationship with
\nthe United States, where 83 percent of Mexico's US$51.88 billion
\nin exports were sent in 1993.<\/p>\n
Mexico is a country which does not impose a quota system on
\nits textile imports but, instead, it imposes import taxes on such
\nproducts.<\/p>\n
Data from the Indonesian Textile Association show that
\nIndonesia's textile exports to Mexico in 1992 reached $8 million.<\/p>\n
Erwin Ramedhan, managing director of WTC Jakarta, noted that
\nMexico's offer could help increase Indonesia's textile exports to
\nthe United States, which imposes a quota system.<\/p>\n
The United States is the second largest importer of Indonesian
\ntextiles after Singapore. Indonesia's textile exports to the
\nUnited States were recorded at $920 million in 1992.<\/p>\n
"It would be merely an illusion if we wanted to increase our
\ntextile exports to the United States by 20 percent this year
\nbecause the annual increase of the quota given to us is only six
\npercent," I Made Kembar Kerepun, chairman of the Textile Society,
\nsaid recently.<\/p>\n
Indonesia's exports of textiles and textile products, which
\naccounted for 15 percent of the country's total exports,
\ndecreased by 8.1 percent last year to US$5.6 billion from the
\nprevious year.<\/p>\n
Textiles and textile products are Indonesia's largest export
\nearners after oil and gas.<\/p>\n
New markets<\/p>\n
Erwin noted that Indonesia should seek new markets, especially
\nin non-quota countries, to increase its textile exports.<\/p>\n
"If we see Mexico's position, we can use it as our beachhead
\nto expand our textile exports not only to North American but also
\nLatin American countries.<\/p>\n
"Don't rely on our traditional markets. We have to be daring
\nenough to penetrate new markets. If our exporters do not grab on
\nto this opportunity, our competitors from Singapore, Taiwan, Hong
\nKong and South Korea will," Erwin said.<\/p>\n
Commenting on Mexico's peso devaluation last December, Erwin
\nnoted that Indonesia could take advantage of the situation
\nbecause Indonesia could import more goods from Mexico at cheaper
\nprices.<\/p>\n
Palacios noted that the financial crisis, which followed his
\ngovernment's devaluation move, is only temporary because his
\ncountry's economic fundamentals are "still very sound." (rid)<\/p>",
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