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)