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)