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Monday, June 18, 2007

RI works toward new strategy to lift game on export products

The trade ministry together with the foreign ministry assembled a special meeting in Budapest last week, where trade and promotion officers were summoned to discuss this year's global trade strategies, especially around non-tariff barriers.

"The meeting is the first of its kind," Trade Minister Mari Elka Pangestu told The Jakarta Post last week.

"We assembled all trade attache officers as well as officers from the Indonesian Trade Promotion Center (ITPC) here in Budapest so we could start some two-way communication.

"We explained the 20 percent trade target growth for this year -- which has been divided by each region -- and what our strategies are to achieve it."

Mari said one of the main focuses of the meeting was the issue of non-tariff barriers.

They concentrated on product standardization because Indonesian products -- mostly foods -- often failed to pass sanitary and phytosanitary (SPS) requirements of EU countries.

Mari said one suggestion to improve Indonesian standards was to ask for assistance from international authorities about product and custom standards.

"We will soon send a proposal for capacity building, technical cooperation and cooperation on product standard harmony," Mari said.

"To the European Commission, we will request help in fine-tuning our local systems and standards so that our goods, especially the agricultural products, can meet their requirements.

"We also seek to have cooperation in customs in order to prevent transshipments.

"We want to prevent other countries from using us as the source of origin."

The same approach, Mari said, would also be adopted for the North American market.

Addressing the attache and promotion officers at the meeting, Mari said she expected them to be aggressive in pursuing these goals.

She told the meeting she expected local authorities to fully understand and comprehend all trade policies.

And she said all authorities would at the same time need to help manage the campaign against Indonesian products.

"In the U.S. and also in Europe, we have to battle the negative campaign against our crude palm oil," Mari said.

"We have been accused of causing an environmental disaster by using protected forests for palm oil plantations.

"And we have to correct this."

Another issue that came to light at the meeting was the threat of anti-dumping tariffs.

Earlier this month the U.S. accused Indonesia of subsidizing its paper industry and imposed an anti-dumping tariff on Indonesia's glossy paper trade, forcing Indonesian exporters to pay up to 10.85 percent in additional duty.

"I must say that it is not fair," Mari said.

"We barely reach four percent of the paper export market share to the U.S."

Indonesia would prepare a legal team to battle the accusation. she said.

The working agenda of attache and promotion officers this year includes: a policy dialogue with the United Kingdom on Indonesian-UK partnerships; a trade mission to London, Brussels, Rome, Amsterdam and Madrid; and a trade promotion event in Paris in November.

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