Ministry urged to boost exports

Ministry urged to boost exports

JAKARTA (JP): President Soeharto yesterday urged industry and
trade officials to help boost exports and curb imports, without
introducing limitations.

"The Ministry of Industry and Trade needs to strengthen its
role of coordinating institutions that involve exports. One
important thing is to promote our goods rapidly," Soeharto told
the officials, who made a courtesy call on the President after
completing a five-day consolidation meeting.

The meeting was made following the merger between the trade
and industry ministries.

The President said non-oil exports must be increased because
of steadily growing imports.

"What is equally important is to control imports. But this is
not to be done through bannings or limitations but through
policies which are well-planned, integrated and clear," he
continued.

Supporting Soeharto's statement on the urgent need to limit
imports, Minister of Industry and Trade Tunky Ariwibowo noted
that it should be pursued carefully.

"Efforts to limit imports should be made in line with the
rules set by the World Trade Organization (WTO)," he told
journalists after the meeting. "We cannot just ban imports. There
are ways that are not against the WTO's rules."

One of the ways to curb imports, Soeharto said, is to
accelerate the development of upstream industries, supporting
domestic industry.

Soeharto expressed concern over the sharp growth of imports
and the slowing down of export growth, which he said was caused
by rising competition in the world market, not weakening demand.

Indonesia's total exports grew by 13.4 percent to US$45.42
billion last year from $40.05 billion in 1994, while imports
soared by 27 percent to $40.66 billion from $30.98 billion.
Consequently, last year's trade surplus fell by 41 percent to
$4.75 billion from $8.07 billion in 1994.

The declining trade surplus has caused the widening of the
country's current account deficit, which is projected to reach
$7.9 billion this fiscal year, ending this month, as compared to
$3.49 billion last fiscal year.

Globalization

The President said Indonesia needs to become more open and
prepared to cope competitively with economic globalization.

With such a global market, on the one hand, there are ample
opportunities for Indonesia to tap foreign markets. On the other
hand, Indonesia could become a dumping ground for products from
other countries.

"That's why we have to be competitive both in foreign and
local markets," Soeharto said.

He vowed that the government will continue deregulation
measures and cut red tape to improve the competitiveness and
efficiency of the country's economy.

"We have to take all necessary efforts so that Indonesian
business people can expand their businesses here and foreign
business people feel that doing business here is cheaper than
doing business elsewhere," he said.

He noted that deregulation is required to scrap unnecessary
bureaucratic obstacles and stimulate innovation and creativity in
doing business.

"To boost our export growth, we have to scrap all unnecessary
obstacles and drop all levies which have no connection with
production," Soeharto said.

The President also said that Indonesia needs to diversify its
export markets, simplify export distributions and widen its
international trading network. "If necessary, work together with
private domestic companies or international companies."

The task is especially urgent for state-owned trading
companies, he continued.

Tunky told journalists after the ceremony that the government
is considering the possibility of merging state-owned trading
companies as they will be charged with special tasks.

"We'll study them all. And after that we'll decide whether to
merge them or set up a holding company for them," Tunky said.

Before being merged into the ministry of industry and trade,
the ministry of trade used to have several trading companies,
including PT Pantja Niaga, PT Kerta Niaga, PT Aduma Niaga, PT
Dharma Niaga, PT Mega Eltra, PT Sucofindo and PT Sarinah
Department Store.

Tunky said that there are too many such companies.

"The companies' activities are focused more on imports of
various goods. But in the future they will be asked to promote
exports," explained Tunky.

Soeharto told the industry and trade officials to help
maintain strong growth in industry and trade.

He also urged them to make use of domestic consultants'
services in the fields of technology, management and marketing,
which so far still rely too much on foreign personnel.

"Strong consultancy services, supported by qualified research
and product testing institutions, will strengthen industry and
trade for the future," Soeharto said. (13/rid)