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Problems hamper RI trade with Australia: NAFED

| Source: JP

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)

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