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)