Indonesia urges Taiwan to ease import rules

JAKARTA (JP): A senior Indonesian trade official urged Taiwan yesterday to ease import barriers to redress the huge trade deficit Indonesia suffers in two-way trade.

Director General of International Trade Djoko Moeljono said Indonesian exports to Taiwan had been hampered by several stringent regulations imposed by Taipei.

Djoko cited quarantine requirements for plants, animal and fishing products, and import regulations for tea, fertilizers, garment products and food additives.

Taiwan had lowered its tariff barriers, but non-tariff measures, including subsidies for local firms, remained, he said at a seminar on market prospects in Taiwan and New Zealand. The event was organized by his office at the Sahid Jaya hotel.

Indonesia registers trade deficits with both countries if oil and gas products are excluded.

The non-oil trade deficit with Taiwan reached $589 million last year, with Indonesia importing $1.656 million, while its exports totaled only $1.067 million.

Indonesia's main imports are industrial machinery and equipment, special yarns, textile fabrics, knitted fabrics, and textile and leather machineries.

Indonesia's main non-oil exports to Taiwan include leather goods, coal, wood and garments. Taiwan is also a major buyer of Indonesia's liquefied natural gas and some oil products.

Despite the absence of diplomatic ties, Taiwan has become one of Indonesia's main trading partners, as well as an important source of private sector investment.

Djoko said Indonesia and Taiwan have placed commercial attaches in each countries to boost economic cooperation.

On the trade deficit with New Zealand, Djoko also blamed stringent import regulations, including setting quality standards for food, high tariffs for textile products, footwear, and electronic products, the antidumping regulations and favorable treatment granted to members of the Commonwealth.

The non-oil trade deficit with New Zealand reached $179.9 million last year from imports of $244.5 million and exports of only $64.6 million. Indonesia's main imports include pulp and waste paper, milk cream and milk products and animal feed.

Djoko noted that Indonesian exporters have not given enough attention to New Zealand because of its distant geographic location.

To bolster trade with Indonesia, New Zealand has lowered its import tariffs and agreed to set up joint a trade committee.

Djoko said Indonesia runs trade deficits with 11 of its major trading partners, including Taiwan, Germany, the United States and China.

The government was now looking at ways of offsetting these deficits, he said.

They include identifying products most needed by the trading partners, setting up bilateral trade forums, sending trade missions, and conducting trade diplomacy to expand the country's export market and identifying the problems curbing export growth. (08)