Britain wants RI to lower tariffs

Britain wants RI to lower tariffs

JAKARTA (JP): British Minister of Trade Anthony Nelson
suggested here yesterday that Indonesia lower its import duties
used to protect local industries.

He said after a seminar on privatization that Indonesian
tariffs on the imports of many industrial products, such
automobiles, are forcing British companies to pay extremely high
duties.

He said Indonesian industry should be confident of its
competitiveness on the international market without erecting
tariff barriers.

The Indonesian government, which has pledged to gradually
liberalize its market by the turn of the century, has introduced
a series of deregulatory measures, including a reduction of both
tariff and non-tariff barriers. However, a number of products are
still subject to high tariff levels.

Nelson, who arrived here Tuesday for a two-day visit, also
suggested that Indonesia simplify licensing procedures to attract
more foreign investment.

Difficult

"I was this morning keen to encourage the state minister for
investment on the simplification and liberalization of the inward
investment rule which is still quite difficult," he said.

After meeting with State Minister of Investment Sanyoto
Sastrowardoyo earlier yesterday, he also held a meeting with
Coordinating Minister for Industry and Trade Hartarto following
the seminar.

A group of financial experts from London participated in the
seminar, which discussed the role of governments, alternative
privatization strategies and the share issuers' and investors'
perspectives on international capital markets.

Nelson said that complicated procedures are hindering British
companies from making investments in Indonesian companies.

According to the Central Bureau of Statistics, Indonesia's
exports to Britain increased by 3.3 percent to US$1.03 billion
last year from $1 billion in 1993, while its imports from that
country declined by 9.1 percent to $710.1 million from $782
million.(kod)