Textile exports rose 10.5 percent in 1996: Tunky

JAKARTA (JP): Export of textiles and textile products rose 10.5 percent to US$6.85 billion last year from $6.2 billion in 1995, Minister of Industry and Trade Tunky Ariwibowo said yesterday.

After meeting with President Soeharto, Tunky said the increase was the highest growth in the last five years.

The increase was made possible by better management of quota allocations to registered exporters and the United States' flexibility in applying new rules of origin for Indonesian textile exports, he said.

"The new rules of origin would have brought negative impacts to our textile exports. However, we successfully negotiated with them and the result was our textile exports increased significantly," Tunky said.

The United States is one of several countries imposing textile quotas on textile exporting countries, including Indonesia.

Its new rules on origin, introduced last July, discouraged exports from developing countries and were criticized by many as a deviation in international trade policy.

Tunky said 40 percent of the textile exports had been made under quotas.

Indonesia's textile exports, accounting for 15 percent of total exports, have fluctuated since the early 1990s.

The value of textile exports increased from $4.01 billion in 1991 to $5.95 billion in 1992 and $6.18 billion in 1993. They dropped by 6.2 percent to $5.79 billion in 1993 before rebounding to $6.2 billion in 1995.

To further encourage growth this year the government had waived the requirement for a letter from exporters stating their export quota, Tunky said.

The government had also increased the number of small-scale businesses and cooperatives allowed to export textiles and textile products from 92 to 214.

It also provided special tax, customs and banking breaks to textile exporters, along with exporters of shoes, electronics, wood and rattan products and leather goods.

Trade

Tunky reported a 72 percent increase in trade surplus to $5.2 billion during the first 10 months of last year, increased from $3 billion during the same period of 1995.

In the period, total exports increased by 10.4 percent to $40.6 billion, consisting of $9.3 billion oil and gas exports and $31.2 billion non-oil exports.

Total imports increased by 5.1 percent to $31.9 billion, comprising $2.4 billion oil and gas imports and $29.4 billion for non-oil and gas imports.

"Looking at these figures, we can say our economy is improving, with export growth exceeding import growth," Tunky said.

As a comparison, Indonesia's exports increased by 13.39 percent to $45.4 billion in 1995 from $40 billion a year before, while imports rose by 22.9 percent to $40.6 billion from $31.98 billion.

Indonesian exports to Asia-Pacific countries last year accounted for 68 percent of total exports.

Japan remained the largest market, absorbing 18.3 percent of total exports, followed by the United States with 16 percent. Europe followed with 20 percent.

Almost all leading export commodities performed well last year, except pulp and paper which saw a cyclical downward trend in prices, Tunky said.

The performing products included electronics, wood and rattan products, textiles, automotive parts and chemical products. (rid)