Central Java firms halt Australian imports

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)