Deregulation to benefit exporters

Deregulation to benefit exporters

JAKARTA (JP): The government's new deregulatory measures will
boost Indonesia's non-oil exports on the world market, Minister
of Industry Tunky Ariwibowo said here yesterday.

"The new measures, which cut import duties and surcharges and
eliminated a number of non-tariff barriers, will substantially
reduce production costs, thereby improving the competitiveness of
Indonesian products on the world market," he said.

The new measures, announced on Monday, slashed import duties
on 739 kinds of goods, removed non-tariff barriers on 27
commodities and lifted import surcharges on 108 other items.

According to the Central Bureau of Statistics (BPS),
Indonesia's non-oil exports increased by 16.23 percent to $27.08
billion in 1993 from the previous year.

Tunky said that the new measures, which will aid the
implementation of the new General Agreement on Tariffs and Trade
(GATT) early next year, were made to follow up the government's
previous measures, including those issued in October 1993 and
June 1994, that significantly eased restrictions on foreign
investment.

"With these measures, we are creating freer trade in line with
the new GATT principles," Tunky said.

He acknowledged that the new measures will hurt some local
manufacturers, "but they will force them to improve efficiency to
prepare for fiercer competition on the world market." (09)