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)