New textile quota policy issued to curb quota trading
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)