Sat, 09 Jul 1994

Problems hamper RI trade with Australia: NAFED

JAKARTA (JP): Non-tariff barriers and a lack of regular product supplies and supporting institutions have hampered the development of bilateral trade between Indonesia and Australia.

Chief of the Indonesian National Agency for Export Development (NAFED) Rudy Lengkong told journalists here yesterday that obstacles other than tariff barriers, such as dumping allegations, have discouraged Indonesian producers and exporters from sending products to Australia.

"They are discouraged because the Australians always consider our cheap goods have been sold at dumping prices. Therefore, we hope the Australian government will help us to make them understand that our production costs are lower than those in Australia," he explained.

He said that between 1991 and early this year, the Australian Customer Service (ACS) and the Australian Drug Agency (ADA) have examined nine Indonesian dumping cases which were filed to the Australian court.

The nine cases, according to the report provided by the trade attache of the Indonesian embassy in Canberra, are: * automotive lead acid storage batteries exported by PT Yuasa Battery Indonesia, * exercise books and spiral bound books exported by PT Locomotive, Eka Sakti and PT Pabrik Kertas Tjiwi Kimia, * clear float glass exported by PT Asahi Glass Indonesia, * flat glass exported by PT Alam Kaca Prabawa, * sorbitol exported by PT Sorini Corporation, * canned tuna exported by PT Deho Canned Tuna and PT Union Pasific, * photocopy paper exported by PT Pabrik Kertas Tjiwi Kimia, * phthalic anhydride exported by PT Petrowidada Gresik and * clear float glass exported by PT Muliaglass.

From the nine cases, only PT Alam Kaca Prabawa proved that it did not dump prices, while the other eight dumping allegations proved true and were subject to various sanctions such as dumping duties.

Australian businessmen have also complained on the difficulty to obtain Indonesian commodities, including plywood, on a regular basis.

"They (Australians) said the non-existence of Indonesian banks in Australia has also hampered the two-way trade," Rudy told reporters in a press conference aimed to inform the result of the participation of 87 companies from the Indonesia's eastern provinces in the Northern Territory Expo '94 held recently in Darwin, Australia.

The Australian business circle also complained about merchandise transportation in Indonesia, which is, according to them, monopolized by one company.

Expo

Rudy said the companies participating in the Australian exhibition earned A$2.57 million from retail sales and other business contacts in Darwin.

"Last year, our participants earned only A$500,000 from a similar exhibition," said Rudy.

The participation of the Expo has also led to the establishment of joint ventures and cooperation projects.

The projects include those in natural water in Central Sulawesi, cow fattening in Southeast Sulawesi, beef cattle in East Timor and Irian Jaya and ferry and shipping transportation, which will link East Nusa Tenggara with Australia and Singapore.

Rudy also reported that next month Indonesian Minister of Trade will visit Australia to attend a ministerial meeting and to promote Indonesian products.

The bilateral trade between the two countries is always in favor of Australia. Last year, for example, Indonesia's exports to Australia reached only US$773.67 million, while its imports reached US$1.39 billion. (als)