Top investment priorities focus on garment and wood<\/p>\n
JAKARTA (JP): The implementation of the new General Agreement
\non tariffs and Trade (GATT) will help increase the
\ncompetitiveness of Indonesia's wood and textile products, leather
\ngoods, electronics, and machinery on the world market, a minister
\nsays.<\/p>\n
\"Indonesia, therefore, will put a high priority on the
\npromotion of the exports of these products in the coming years,\"
\nCoordinating Minister for Industry and Trade Hartarto said in a
\nluncheon meeting with the Indonesia Financial Executive
\nAssociation (IFEA) here yesterday.<\/p>\n
According to the Central Bureau of Statistics, Indonesia's
\nexports of both wood and textile products went up -- wood by 30.8
\npercent to US$5.47 billion last year from $4.18 billion in 1992
\nand textile products by two percent to $6.18 billion from $6.06
\nbillion.<\/p>\n
However, exports of leather goods declined by 8.5 percent to
\n$73.66 million from $80.54 million.<\/p>\n
The bureau's latest monthly report also shows that, last year,
\nthe country's exports of machinery reached $180.3 million and
\nelectronics reached $1.54 billion.<\/p>\n
Hartarto said increasing exports was necessary for Indonesia
\nto earn more foreign exchange. He expressed that this was a
\ncritical move for Indonesia, which would find it more and more
\ndifficult to obtain soft loans for its development projects as it
\ndeveloped economically.<\/p>\n
Indonesia will also face fiercer competition from countries
\nsuch as China, Vietnam, the Philippines and Bangladesh in
\nattracting foreign investments for its industrial development, he
\nsaid.<\/p>\n
Indonesia's total exports last year increased by 8.4 percent
\nto $36.82 billion from $33.96 billion last year.<\/p>\n
Opportunities<\/p>\n
Hartarto said the minister of trade is currently busy
\ncommunicating the results of the recently concluded Uruguay Round
\nof negotiations on GATT to businessmen, to encourage them to
\nseize the opportunities offered by the new agreement.<\/p>\n
He said rapid growth in exports would help Indonesia maintain
\nits annual economic growth rate of seven percent.<\/p>\n
To support the export promotion, the minister said that the
\ngovernment would continue efforts to maintain the country's
\npolitical stability and its conservative macro-economic policies.<\/p>\n
The government will also continuously introduce deregulatory
\nmeasures to improve efficiency, he said. \"We have to create an
\nefficient bureaucracy to attract foreign investors,\" the minister
\nstated oxymoronically.<\/p>\n
However, he declined to specify when the government would
\nannounce its planned deregulatory measures. \"Please, be patient
\nfor the next announcement,\" the minister said.<\/p>\n
A number of government officials have revealed that the new
\nderegulatory measures will allow foreign investors to hold more
\nequity in Indonesian projects and simplify licensing procedures.<\/p>\n
An informed source said President Soeharto has signed the new
\nmeasures and will probably make an announcement this week.<\/p>\n
Hartarto said yesterday that the government will also
\nencourage companies to improve their human resources to increase
\nproductivity.<\/p>\n
He explained that some 70 percent of Indonesia's trading
\nactivities are concentrated in the Asia-Pacific region,
\nparticularly Japan, Taiwan, South Korea and the United
\nStates.(09)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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