Indonesian textile-export quota increased 29 percent
Indonesian textile-export quota increased 29 percent
JAKARTA (JP): Indonesia's textile-export quota will increase
by up to 29 percent this year thanks to quota swaps from
Singapore, higher quotas from Europe and the exemption of export
overshipments last year.
A statement from the Ministry of Industry and Trade yesterday
said that discussions between the Indonesian and Singaporean
governments last month resulted in a quota swap which allowed
Indonesia to export an additional 3.34 million kilograms of
sheet-textile and 10.06 million garment pieces to the European
Union (EU).
These allocations, or quotas, initially belonged to Singapore.
The statement said the European Commission had also allowed a
2 percent addition to Indonesia's export quota to the EU, which
is equivalent to 2.41 million kg of sheet-textile and 2.6 million
pieces of garment.
Last year Indonesia gained exemptions from the overshipment of
its textile exports, part of which was done without cutting back
export quotas for this year.
"As a result, Indonesia's export quota this year will increase
by 29 percent from that in 1996, or about a third of Indonesia's
total export quota," the statement read.
The Ministry of Industry and Trade distributes export quotas
to textile producers who then use them to send exports to the
countries that set the quotas.
About 60 percent of exports of textiles and textile-related
products are under quota schemes.
Yesterday's statement also said the inter-governmental talks
last month concluded that Singapore had no objections to the
quota swaps for textile exports to Europe and the United States.
"The Indonesian and Singaporean governments have agreed to
allocate these EU quotas to companies that need them," the
statement said.
The statement did not disclose what categories of textile
export quotas were given to Singapore in the deal.
According to the deal, companies receiving the a quota should
use it themselves and not trade it with others.
In recent years, export quotas have been sold regularly by the
companies receiving them. Analysts say the high price of the
quotas and their uneven distribution by the ministry were among
the reasons the country's textile industry had been lagging.
The government has vowed to fine those trading the quotas.
According to the Ministry of Industry and Trade, the value of
textile and textile-related exports increased from $5.9 billion
in 1992 to $6 billion in 1993 but fell to $5.6 billion in 1994
before recovering to $6.2 billion in 1995 and an estimated $6.8
billion last year.
Yesterday's statement said quota swaps to the U.S. would be
discussed further because the issue had not been mentioned in the
bilateral agreements between the U.S. and Singapore and between
the U.S. and Indonesia.
A three-party meeting between Singapore, Indonesia and the
U.S. was scheduled for this month or next month, the statement
said.
Singapore, it said, had agreed for the quota swap to the U.S.
to be at least of the same amount as that to the EU, or about 10
percent of Indonesia's total textile export quota.
"The quota swap, overshipment exemptions and additional export
quotas will improve the export performance of Indonesia's textile
and textile-related products -- both in terms of volume and value
-- to an extent that has never been achieved before," the
statement read. (pwn)