RI may use Mexico as its 'beachhead' to export textiles
RI may use Mexico as its 'beachhead' to export textiles
JAKARTA (JP): Indonesia could use Mexico as its "beachhead" to penetrate North and Latin American textile markets.
Mexican Ambassador to Indonesia Jorge Palacios said here yesterday that Indonesia can export more textiles to his country.
"You can export your batik, for instance, to our country and then we will tailor them and export them to the United States as Mexico's exports," Palacios said in a presentation organized by the World Trade Center (WTC) Jakarta.
In accordance with the WTC Association's spring meeting in Mexico next month, WTC Jakarta will bring a trade mission to that Latin American country to promote trade cooperation.
Palacios noted that trade between Indonesia and Mexico is increasing, although the size is still very small. Two-way trade rose 110 percent in 1993 to $313 million, of which Indonesia enjoyed a surplus of $79 million.
He noted that Indonesia can benefit greatly by exporting its textiles to Mexico. Mexico has a special trade relationship with the United States, where 83 percent of Mexico's US$51.88 billion in exports were sent in 1993.
Mexico is a country which does not impose a quota system on its textile imports but, instead, it imposes import taxes on such products.
Data from the Indonesian Textile Association show that Indonesia's textile exports to Mexico in 1992 reached $8 million.
Erwin Ramedhan, managing director of WTC Jakarta, noted that Mexico's offer could help increase Indonesia's textile exports to the United States, which imposes a quota system.
The United States is the second largest importer of Indonesian textiles after Singapore. Indonesia's textile exports to the United States were recorded at $920 million in 1992.
"It would be merely an illusion if we wanted to increase our textile exports to the United States by 20 percent this year because the annual increase of the quota given to us is only six percent," I Made Kembar Kerepun, chairman of the Textile Society, said recently.
Indonesia's exports of textiles and textile products, which accounted for 15 percent of the country's total exports, decreased by 8.1 percent last year to US$5.6 billion from the previous year.
Textiles and textile products are Indonesia's largest export earners after oil and gas.
New markets
Erwin noted that Indonesia should seek new markets, especially in non-quota countries, to increase its textile exports.
"If we see Mexico's position, we can use it as our beachhead to expand our textile exports not only to North American but also Latin American countries.
"Don't rely on our traditional markets. We have to be daring enough to penetrate new markets. If our exporters do not grab on to this opportunity, our competitors from Singapore, Taiwan, Hong Kong and South Korea will," Erwin said.
Commenting on Mexico's peso devaluation last December, Erwin noted that Indonesia could take advantage of the situation because Indonesia could import more goods from Mexico at cheaper prices.
Palacios noted that the financial crisis, which followed his government's devaluation move, is only temporary because his country's economic fundamentals are "still very sound." (rid)