Central Java firms halt Australian imports

JAKARTA (JP): The Central Java chapter of the Indonesian Textile Association (API) has decided to replace its Australian cotton imports with goods from Turkey, China, Pakistan and Africa in anticipation of a possible disruption in cotton supplies from the neighboring country.

Andi Sanang Romawi, a senior executive from the association, said in Semarang on Friday that textile producers in the province were also studying the prospects of importing the commodity from other members of the Islamic Conference Organization.

He said substituting Australian cotton imports was important to ensure that the supply of the raw materials would not disturb production activities.

The textile association recently canceled cotton import contracts worth US$2.7 million from their Australian partners, he said, adding that textile producers were in the process of seeking new contracts from other countries.

Andi, also a director with PT Damatex Salatiga, said although some of the association's members were still importing cotton from Australia under existing contracts, they had canceled their textile and garment exports to the country.

Amid escalating tension between Australia and Indonesia, API announced last week a cut in cotton imports from its neighbor.

Indonesia imports 17,616 tons of cotton worth $2.7 million, and had monthly exports of 70 tons of textile and garments.

"It is not a big problem to stop cotton imports from Australia," Andi said.

Australian trade unions recently refused to load and unload goods bound for and originating from Indonesia at Australian ports in protest of Indonesia's handling of the East Timor situation.

The unions lifted their boycott last week, but Indonesian businesspeople said the boycott was maintained in some parts of Australia.

Citing fears of supply disruptions, Indonesian wheat millers have also announced a plan to seek alternative wheat sources. (06)