Textile firm urge govt to fight dumping charge

JAKARTA (JP): The Indonesian Textile Association (API) prodded the government yesterday to launch an international lobby against dumping charges slapped on Indonesian textile exports.

API director M. Manimaren said 38 textile-importing countries had voted against the accusation, but 42 others believed Indonesia had dumped its textile products on the international market.

"That's why we expect the government to lobby Belgium, Luxembourg and Austria, all of which abstained," he told reporters after meeting President B.J. Habibie.

He also said the head of state should lobby export-target countries, especially the quota market which was eager to help Indonesia export its way out of the crisis.

"We expect the help will be in the form of a bigger quota."

He explained that textile exporters confronted multiple obstacles, including the rejection of letters of credit by overseas banks, shrinking working capital and cancellation of orders by foreign buyers.

"But we're optimistic that this year's target of US$8 billion in foreign exchange revenues can be obtained," Manimaren said. He added that the sector, which last year earned about $7.3 billion, would still be the nation's main non-oil and gas export revenue contributor.

He urged exporters to start concentrating on non-quota export markets due to the limited quota markets, saying the composition of the two was 54 percent and 46 percent respectively.

"Our commitment is to make a total contribution to restore the economy, but we need the government's full support," he said.

"There must also be serious attention to the labor issue because it is being used by certain people for political means."

The future of the textile sector and its huge labor force would also depend on the resolution of the issue, he added.

Manimaren explained the sector was projected to earn $10 billion in foreign exchange revenue by 2000, not far off the $14 billion projection for India.

Indonesia is currently the world's 12th largest textile exporting country after India.

Manimaren said "optimal" support from the monetary authority and the banking sector was critical to reach the target.

The country's manufacturing sector has been badly hit by the extremely high level of interest rates and the halt in bank financing because of its huge problems.

"All kinds of export restrictions must also be abolished," he said. (rei/prb)