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)