Textile-quota traders will be fined: Tunky

Textile-quota traders will be fined: Tunky

JAKARTA (JP): The government is to fine traders of textile-
export quotas in a bid to encourage more exports of textiles and
textile-related products.

Minister of Industry and Trade Tunky Ariwibowo said in Nusa
Dua, Bali, yesterday that quota trading practices have marred the
performance of textile exports because they have reduced export
opportunities for those in the textile industry.

"To reach a target of US$12 billion from textile exports (per
annum), we need to improve the management and supervision of
quotas," Tunky was quoted by Antara as saying.

Exports of textiles and textile-related products exceeded
US$6.2 billion in value last year -- or 13.66 percent of the
country's total exports -- compared with US$5.8 billion in 1994.

During the first four months of this year, textile exports
were $1.98 billion, up from $1.8 billion during the same period
of last year.

The export director at the Directorate of International Trade,
Sudar, explained that his office will monitor intensely quota
trading among quota holders, especially between those who have no
export capabilities but have secured export quotas from the
government.

The Ministry of Industry and Trade distributes export quotas
to textile producer-exporters, through which textile producers
can export their products to countries which set such quotas.

Tunky said that the size of the fine for quota traders will be
the same as the value of the traded quotas.

He noted that textile producers should not play around with
quotas, considering that the government has given a number of new
facilities to them.

In an effort to boost the country's non-oil exports, the
government, through a deregulation package announced in June, has
given special tax, customs and banking breaks to exporters of
textiles and textile-related products, shoes, electronics, wood
and rattan products and leather goods.

Banking incentives for exporters in the five sectors include a
more favorable interest rate on rediscount facilities, longer-
term usance letters of credit and freedom in deciding the level
of fees for opening letters of credit.

The government, Tunky said, has so far extended such
facilities to 44 companies and is still processing the proposals
from 124 other firms.

The government, however, will not give such facilities to
companies that violate the rules, including those which trade
their quotas, Tunky said. (rid)