Indonesian Political, Business & Finance News

Govt pledges to end illegal export levies

| Source: JP

Govt pledges to end illegal export levies

JAKARTA (JP): Minister of Trade Satrio B. Joedono pledged
yesterday to eliminate illegal levies and to simplify procedures
which have increased costs for exports.

"We will reduce the number of people involved in licensing
procedures through computerization," he said in a hearing with
Commission VII of the House of Representatives (DPR).

He told the commission, which is in charge of trade, finance
and logistics, that the simplification of procedures and
elimination of illegal levies were necessary to boost Indonesia's
non-oil exports, whose rate of growth has declined in the last
few months.

Non-oil exports, which used to increase by more than 20
percent per year before 1992, rose only by 16.2 percent to
US$27.07 billion last year from $23.29 billion in 1992. Non-oil
exports even declined during the first few months of this year.

Joedono acknowledged that illegal levies and arduous
procedures have affected the competitiveness of Indonesia's
products on the world market.

Exporters complained recently that they have had to provide
extra money for their exports because officials at ports,
container terminals and bonded (export-processing) zones have
demanded illegal levies. Port authorities have tried to reduce
illegal levies by introducing vouchers for paying services at
ports and container terminals. In addition, the director general
of customs and duties promised to take severe action against
employees discovered to have received illegal payments.

Joedono said yesterday that the government has a strong
commitment to reduce the costs of production in a bid to promote
the country's non-oil exports.

A series of deregulatory measures introduced over the last few
years to lower import tariffs and to eliminate non-tariff
barriers also show the government's commitment to boost exports.

A member of the commission, A.A. Baramuli, proposed that the
government also provide for the strengthening of the country's
up-stream industry to help lower costs for the production of
export products.

"Locally-made goods can not compete with those from other
countries because we have to import most of the basic, raw
materials," he said. (yns)

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