Thu, 08 Apr 2010

Jakarta (ANTARA News) - Indonesia and China have agreed to cooperate in the verification of certificates of origin of exports (SKA) from the two sides to minimize smuggling.

"To prevent smuggling or illegal imports the two sides have agreed to cross-check the SKA of every export from Indonesia or China," Deputy Trade Minister Mahendra Siregar told newsmen here on Wednesday.

He said he had already held discussions with the Association of Indonesian Textile Industries (API) to find the mechanism for it.

Mahendra said Indonesia and China had increased the cooperation between the two countries` SKA-producing institutions to boost security of the two countries` markets.

"As soon as an SKA is issued the recipient will also receive it electronically and therefore could conduct monitoring making securing the market easier," he said.

The director of Export and Import Facilities of the Directorate General of Foreign Trade, Ahmad Syafrie, meanwhile said from January to February 2010 Indonesia had produced almost 2,000 SKAs Form E (for China) a month.

"SKAs Form E in January totalled 1,997 and in February 1,999," he said.
Indonesia`s exports using SKAs Form E and receiving a free import duty facility in January reached US$467 million and in February US$449 million.

Based on the National Bureau of Statistics data Indonesia`s non-oil and gas exports to China rose 137.6 percent from January to February 2010 to around US$2 billion.

Indonesia`s export market share in China rose from 6.8 percent to 10.9 percent of its total non-oil and gas exports in 2010.