Red tape threatens export-import growth
Red tape threatens export-import growth
JAKARTA (JP): Current export-import procedures and the
documentation involved are inefficient and a threat to the growth
of Indonesia's external trade, a trade official said yesterday.
"The recent deregulatory measures aimed at boosting non-oil
exports will remain inadequate as long as the current arduous
licensing procedures and export-import documentation cause
chronic delays," Antara quoted Bakir Hasan, the chairman of a
national team for trade facilitation.
Bakir used to be the secretary-general of the former Ministry
of Trade, which has been merged with the Ministry of Industry to
become the Ministry of Industry and Trade.
At a workshop yesterday on exports and imports, Bakir
acknowledged that lengthy procedures have raised costs and
inefficiency.
He added that administration costs for exports and imports
amounted to US$7.2 billion last year, representing 10 percent of
the country's total value of exports and imports.
To cope with the problem, he suggested that related government
institutions simplify licensing procedures and documentation to
boost the country's non-oil exports.
However, he said the team cannot force other government
institutions and ministries to ease the problem.
The team has to take a psychological approach in getting the
government institutions to simplify procedures and documentation,
he said.
The government has formed five technical teams in charge of
customs and excise; land, railway transportation, shipment and
goods inspection; export, import and trade regulatory
supervision; cargo insurance; credit and banking insurance; and
collection of state revenues.
According to a survey conducted by the United Nations
Conference on Trade and Development, 51 government and private
bodies are involved in export-import and pre-shipment activities
in Indonesia.
The procedure for processing textile exports requires 26
documents, while other procedures require up to 121 documents --
some of which have to be copied up to 300 times.(kod)