Thu, 14 Jul 1994

NAFED needs improvement in status for export promotion

JAKARTA (JP): A.A. Baramuli, a member of the House of Representatives (DPR), yesterday urged the government to improve the status of the National Agency for Export Development (NAFED) and to make it independent from other institutions.

"NAFED should be given independent status like the Investment Coordinating Board (BKPM) and the National Family Planning Board (BKKBN) to improve its authority in organizing promotional activities for the country's non-oil exports," Baramuli said in a meeting with company executives who will take part in overseas trade exhibitions.

NAFED is an agency under the Ministry of Trade.

Baramuli said a higher and independent status is necessary for NAFED so that it can ask government institutions, including ministries, to support its promotional activities.

As long as NAFED's status is not improved, ministries and other government institutions will send officials of low rank, who do not have an authority to make quick decisions, whenever it invites their leaders.

NAFED's chief, Rudy Lengkong, acknowledged that his agency faces many obstacles whenever it wants to gather officials of other institutions to support promotional programs.

"The agency does not have enough authority to coordinate meetings with officials from other institutions, such as the Ministries of Finance, Agriculture and Industry," he said.

The government is concerned that the growth of the country's non-oil exports declined from 28.3 percent in 1992 to 16 percent last year.

Lengkong also announced yesterday that Indonesia will take part in three international exhibitions in Iran, Denmark and the United States.

Fourteen companies, including Nusantara Aircraft Industry (PT IPTN), PT Indofood and PT Dok & Perkapalan Kodja Bahari, a state- owned shipbuilding company, will participate in the fifth Islamic Trade Fair in Teheran from July 16 to July 20, he said.

Indonesia will send eight small companies to the California Gift Show in Los Angeles from July 23 to July 27 and six furniture firms to the Scandinavian Furniture Fair '94 in Denmark from Aug. 31 to Sept. 4.(yns)