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)