RI textile exports to increase

RI textile exports to increase

JAKARTA (JP): The Indonesian Textile Association (API) has
predicted that this year's exports of textiles and textile
products will grow by 10 percent to US$6.2 billion.

An API deputy chairman, Lili Asdjudiredjo, disclosed the
association's estimate after meeting with Vice President Try
Sutrisno yesterday. However, he said that textile producers
needed assistance from the ministries of trade, industry and
finance in achieving their export target.

"API members themselves have to strive to achieve higher
growth this year so that we can realize our prediction of 10
percent export growth," he said.

At yesterday's meeting Lili was accompanied by another API
deputy chairman, Mintardjo Halim; Chairman of the Textile Society
I Made Kembar Kerepun; and API's deputy secretary, Irwandy
Muslim.

Exports of textiles and textile products -- the country's
largest foreign exchange earners among non-oil products --
decreased by 8.1 percent last year, to US$5.6 billion, from the
previous year's exports.

A number of parties, including the association and the
Ministry of Trade, have said that the main cause of last year's
drop in textile exports was tougher competition from other
textile-exporting countries, such as China, Vietnam, Bangladesh
and India.

Involvement

To increase textile exports, Lili asked the government to
involve API in a number of international textile-related
activities, such as export promotions and the establishment of
promotion houses abroad.

"We also want to be consulted, especially when the government
wants to introduce new regulations on exports and imports of
textile products," Lili said.

He added that API wanted to be involved in the management of
quota allocations among Indonesian exporters which, so far, has
been monopolized by the Ministry of Trade.

API has repeatedly put forward its own quota allocation system
which includes an electronic verification visa system. The
association says that the use of the system would stop fictitious
exports of textiles.

Last year Indonesia was hit by cases of fictitious exports
involving a number of companies wanting to get cheap funds from
export facilities.

Lili questioned yesterday the government's decision to collect
value added tax at every stage of production, from thread to
garments.

"It would be better for us if the government collected value
added tax after all production processes are completed. In this
case, we want a tax postponement facility," Lili said.

Commenting API's wish, Try Sutrisno asked the association to
present its proposal on the postponement of value added tax in
the textile industry to every related government institution.

"We have made our proposal to many related parties, and all of
them have expressed agreement, but none of them has taken a real
step. It is as with a cake which everybody says is delicious but
nobody wants to eat," Lili said. (rid)