New textile quota policy issued to curb quota trading
JAKARTA (JP): The government issued on Thursday a regulation to curb the trading of export quota among textile producers which have hampered the growth of the country's textile exports.
Under the regulation, the government would hold the right to transfer the export quota from exporters who are unable to meet their export quotas to exporters who are able to do so, Minister of Industry and Trade Luhut B. Pandjaitan said.
"This new regulation hopes to make quota channeling more transparent and competitive," Luhut was quoted as saying by Antara.
The government each year renews fixed quotas of textile firms, based on their compliance of the export quotas the year before.
"Now fixed quotas cannot be taken for granted," Luhut said.
He said under the new ministerial decree, fixed quotas could be transferred to other textile firms, if the textile firms had failed to utilize the quotas.
Luhut also said that trading of textile quotas among textile firms was rampant, causing inefficiency within the industry.
Therefore, he continued, the government would form a team to conduct a "check and balance" on the utilization of textile quotas.
"We will evaluate the implementation of the regulation every six months," he added.
The Ministry of Industry and Trade has appointed state-owned surveyor company PT Sucofindo to assist them in monitoring the realization of each textile exporter's fixed quotas.
The ministerial decree No.2/2001 on the quota of textile exports and products, among other things, stipulates that textile firms failing to fully utilize their fixed quotas, face reduction in their next quota.
The decree further says that small textile exporters and cooperatives can apply for a growth quota, a temporary quota, a flexibility quota or a shift specification quota.
Textile exporters who do not have a fixed quota can only apply for a temporary quota or a flexibility quota.
Textile exporters can transfer their fixed quotas to other exporters for the purpose of obtaining a larger export share in value or volume, for which, however, firms must first obtain approval from the minister of industry and trade.
The decree says that textile exporters who have violated the regulation will receive three written warnings before the government freezes their textile export permits for up to six months.
Under the decree, the textile Export Certification Body (IPSKET) will be in charge of accrediting registered textile exporters.
IPSKET, according to the decree, comprises PT Persero Kawasan Berikat Nusantara of the Batam Authority, several administration offices of the ministry of industry and trade, and other authorities yet to be appointed by the ministry.
Luhut estimated that for the year 2001, the textile exports would grow by 10 percent or US$800 million compared to last year's estimated export value of $8 billion.(bkm)