Textile firm urge govt to fight dumping charge
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)