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)