Handover won't affect RI exports to HK: Tunky
Handover won't affect RI exports to HK: Tunky
JAKARTA (JP): Hong Kong's reversion to Chinese rule will not
affect Indonesia's exports to the former British colony, a senior
minister said yesterday.
Minister of Industry and Trade Tunky Ariwibowo said trade
between Indonesia and Hong Kong would remain as it was because
there was no change in the trade status of the island.
"There will be no changes in tariffs and other trade
requirements on our exports to Hong Kong," Tunky said. "The trade
between Hong Kong and China will remain as international trade
instead of domestic trade."
He was speaking after opening the fourth meeting of the joint
commission on economic, trade and technical cooperation between
the Indonesian and Chinese governments.
Tunky said the handover would instead create opportunities for
Indonesia to increase its exports to the Chinese mainland.
"Indonesian exports to China through Hong Kong may even be
higher because with the handover, Hong Kong as Asia's leading
center for commerce and finance will give more access for
Indonesia to enter China," he said.
Indonesian trade with Hong Kong was one item on the agenda at
the two-day meeting, which also discussed potential obstacles in
trade relations.
In his address before the meeting, Tunky expressed concern
about the Chinese government's high tariff rate on Indonesian
plywood. Plywood and other wood products were the largest non-oil
exports to China last year, totaling US$237.29 million.
The minister also urged both delegations to finalize a
merchant shipping agreement, and agree on a new air
transportation arrangement immediately to guarantee smooth flow
of goods and people between their countries.
He also hoped the countries would soon reach a pact on the
avoidance of double taxation.
China's Vice Minister of Foreign Trade and Economic
Cooperation Li Guohua spoke yesterday of immigration difficulties
faced by Chinese visitors entering Indonesia.
"For every six Indonesians entering China, only one Chinese
could enter Indonesia," Li said.
She also criticized the preemptive registration of Chinese
trademarks in Indonesia, which she claimed "hampered the
development of Chinese export to Indonesia".
Trade between Indonesia and China last year totaled US$3.65
billion, up 12.92 percent from $3.23 billion in 1995, in favor of
Indonesia.
Indonesia's exports to China reached $2.05 billion last year,
compared to China's exports of $1.59 billion. Oil and gas
exports made up US$1.06 billion, or more than half of Indonesia's
total export value.
Headed by Li, the Chinese delegation consisted of officials
from the foreign affairs, foreign trade and economic cooperation
ministries, and private sector individuals. (das)