Exporters complain of high costs and delays
JAKARTA (JP): Small and medium-size exporters complained yesterday to Minister of Industry and Trade Tunky Ariwibowo about the high costs plaguing their businesses.
They complained of unfair textile quota allocations, inappropriate value-added taxes on commodities and sharp increases in mandatory forestry royalties.
They also complained about delays in refunding import duties and taxes paid on imported raw materials for export goods and unreasonable customs penalties and unnecessary licensing.
"How can we make our businesses competitive if we always face problems in dealing with officials at all levels of the bureaucracy," an electronics businessman said at yesterday's meeting with the minister.
The meeting was held at the Jakarta Fair ground to coincide with the Export Product Exhibition 1996.
The businessman complained that officials often extorted money from companies by holding back letters verifying a company's domicile, which must be renewed once a year.
He also complained that it took ages to get refunds for import duties and taxes on raw materials used to produce exports.
"When we want to get a refund, it is so difficult. And the officials are usually unfriendly, even though the money is ours," he said.
A textile-exporting businesswoman complained about the customs regulation on fines, which stipulates that if an error is made on export documents the subject could be fined between Rp 1 million (US$425) and Rp 10 million.
"Once I made a mistake in filling out the forms, and I had to pay Rp 1 million for the mistake although my exported goods were worth only US$3,500," the businesswoman said.
Responding to the complaint on customs fines, Minister Tunky promised to take the problem to the Ministry of Finance, which supervises the Directorate General of Customs and Excise.
Textile quotas
A textile exporter said the allocation of quotas for textile exporters was inefficient, arguing that some of the quotas go to non-textile producers who sell them to those who need them.
Hearing the complaint, Tunky promised to improve the allocation of textile quotas and invited the exporters to report to his office to ensure that the quotas go to those who really need them.
Another businessman complained that the government-imposed value-added tax on several commodities had reduced the competitiveness of local agro-industries, whereas the commodities went untaxed in other countries.
"I agree with you that primary agricultural produce should not be taxed. I promise to bring the matter to the Minister of Finance who has the authority to review the taxes," Tunky said.
The meeting was scheduled for last Wednesday morning but was postponed until yesterday because the minister had "an important meeting at his office," said an official from the Ministry of Industry and Trade. (rid)