RI sees first trade surplus with Australia in five years<\/p>\n
JAKARTA (JP): Indonesia's US$632 million trade surplus with
\nAustralia in the first eight months of the year is its first
\nsince 1993, a senior official at the Ministry of Industry and
\nTrade said on Tuesday.<\/p>\n
Director General of International Trade and Industry
\nCooperation Hatanto Reksodiputro attributed the surplus mainly to
\nthe decline in imports from the neighboring country.<\/p>\n
Indonesia's exports to Australia reached $1.49 billion in the
\nfirst eight months of this year, almost equivalent to the figure
\nrecorded in the same period last year. But a decline in imports
\nfrom the neighboring country to $865 million during the same
\nperiod resulted in the surplus favoring Indonesia.<\/p>\n
\"Although the surplus was due to the sharp drop in our imports
\nfrom Australia, it has shown that there is great potential for
\ntrade between the two countries,\" Hatanto said in his written
\naddress at the opening of a workshop on the use of Generalized
\nSystem of Preferences (GSP) facilities.<\/p>\n
His address was read by the ministry's director for bilateral
\ncooperation, Pos M. Hutabarat.<\/p>\n
Hatanto said Australian exports to Indonesia were nearly cut
\nin half in the first semester this year as most Indonesian
\ncompanies faced financial problems due to the severe drop in the
\nrupiah's value against the greenback.<\/p>\n
Indonesia has suffered a deficit in its trade with Australia
\nsince 1993, but it had diminished in the past two years.<\/p>\n
It dropped by 30 percent in 1997 to $909.3 million from about
\n$13 billion the previous year as Indonesian exports to the
\nneighboring country continued to increase.<\/p>\n
Indonesia's exports to Australia reached $1.5 billion last
\nyear but its imports remained high at $2.4 billion.<\/p>\n
The country exports ingots, iron and steel, cocoa, textiles,
\nfurniture and wood products to Australia, and imports live
\ncattle, meat and dairy products, and machinery.<\/p>\n
He noted that high import tariffs and strict quarantine
\nregulations imposed on some animal and plant products continued
\nto be obstacles to Indonesia entering the Australian market.<\/p>\n
GSP facilities<\/p>\n
Hatanto said the GSP facilities offered by the United States
\nand the European Union were of little benefit to Indonesia.<\/p>\n
The types of export commodities covered under the tax
\nincentive package were limited and most Indonesian commodities
\ncould not meet the requirements, he added.<\/p>\n
According to the Ministry of Industry and Trade, export
\nproducts from Indonesia to the United States using GSP reached
\n$1.9 billion in 1997. This was 53.9 percent of the $3.5 billion
\nof the export value eligible to use the facilities, and 21.8
\npercent of the total export value to the U.S.<\/p>\n
Exports of certain agricultural and industrial commodities
\nfrom developing countries to the U.S. under the GSP facilities
\nare exempted from customs duties. The U.S GSP facilities are
\nprovided to over 4,400 items from 140 countries.<\/p>\n
Similar facilities are provided by European countries but they
\nonly reduce the import tariffs, instead of eliminating them, and
\nmostly for industrial goods.<\/p>\n
Export products from Indonesia to the European Union using the
\nGSP reached ECU 4 billion, only 57 percent of the country's total
\nexport value of ECU 7.1 billion to the regional grouping.<\/p>\n
Japan's GSP facilities are provided until March 31, 2001, to
\ncertain agriculture products and all industrial products.<\/p>\n
Data from the ministry shows that Indonesia's exports to the
\nU.S. in the first half of 1998 reached $4.3 billion, up 3.22
\npercent from $4.2 billion in the same period for 1997.<\/p>\n
Exports to the European Union in the first semester this year
\nreached $3.8 billion, up 4.36 percent from $3.7 billion in the
\nequivalent period last year.<\/p>\n
Meanwhile, Hutabarat said he expected the country's exporters
\ncould take advantage of the extension of GSP facilities from the
\nU.S.<\/p>\n
He said the program was scheduled to cease on Sept. 30, but
\nthe U.S government had extended it until September 2000. (gis)<\/p>",
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