The target and direction of Industrial and trade development for the last year of the sixth Five year plan Development and for the Seventh Five Year Development are basically still relevant to be implemented. Even though the challenges are different due to the recent position of national economic growth and unpredictable condition.
During the period of the Development Reform Cabinet, considerable targets have been achieved in Industry and Trade sector. In order to increase export, the government has expanded the scope of commodities that are given particular Export companies (PET) facilities.
Policies in foreign trade field is directed to increase export value and foreign exchange receipt diversity types of commodities, strong competitiveness, expand market access, promote non-oil and gas commodities, and settle export problems.
Import policies are directed to control goods imported, for production and consumption needs, state security, and environment. The import policies are among others in forms of import restriction, import trading procedures consisting of permits, import executive appointment, and quota: import duty tariffs, overcoming unfair trade, practices such as violation of anti Dumping and countervailing Duty.
To improve Small and medium-Scale Industries (IKM) a critical period, the government has allocated rolling fund assistance for handicraft industries and agricultural industries, which have exported potential, and their supporting business. In the frame work of facing market globalization and strengthening competitiveness of small industries products, the government will implement ISO-9000 quality management absorption program, including small industry producing export commodities, component making (sub contracting) industry, types of industry that will and have applied SNI national standard, and Industrial companies experienced in applying group Quality Control (GKM).
REGULATIONS
By the legalizing Act Number 5 of 1999 on prohibition of Monopoly Practices and Unfair Competition on 5th March 1998 that will take effect one year after being sanctioned, the industrial competitiveness in the country has become healthy.
The creation of Act on Prohibition of Monopoly Practices and Unfair competition is intended to give contribution to the efforts of improving natural economy efficiency, which in turn will increase social welfare.
The legalization of Act Number 8 of 1999 on consumers Protection by the President of the Republic of Indonesia on 20th April 1999 that will take place in April 2000, in this reform era, is expected to be able to give freedom to consumers in enjoying a product and simultaneously to build business actors in selling their quality product as well as to protect consumers.
Two consumer protection agencies were born from this act, namely the national Consumer Protection Board (BPKN) domiciled in the Capital City and Consumer Dispute Settlement Board (BPSK) in the second-Level District territory. Both agencies members consist of representative of business actors, consumers, academicians and non-government consumer institutes, beside those of the government. The number of companies registered based on the Act on Company Registration Obligation from July is 1,376,426 companies.
The issuance of a series of policies free import trading and distribution of sugar arrangement and farmers obligation to grow sugar cane and sell their harvest to BULOG (National Logistic Agency). Thus Sugar trading is handed over to market mechanism, and General Importers (IUS) can carry out import with 0% import duty. To assist farmers in overcoming loss due to decrease in sugar prices in domestic markets, the government has decided that farmers sugar should be brought by Sugar Factories and the Sugar Factories have to buy farmers Sugar in 90% cash and the balance should be paid form of kind.
Import trading arrangement of automotive Industries which was formerly arranged IU,TT/AT and subject to a very high percentage of import duty, has been reviewed and is planned to be altered to automotive import simplification by eliminating tariff barrier.
Data of Indonesia's Trade First Quarter 2001
Total Export: US$ 14.8 Billion
Oil and gas: US$ 3.7 Billion
Non-Oil and gas US$ 11.1 Billion
Total Import: US$ 9 billion
Oil and Gas US$ 0,8 billion
Non-Oil and Gas US$ 8,1 billion
AUTOMOBILE INDUSTRY
The Indonesian automobile sector is bracing for a Chinese invasion. In only two years, Chinese-made motorcycles have captured 25 percent of the Indonesian market at the expense of the long dominant, domestically-manufactured Japanese brands. With recent GOI approval, 700 Chinese-made Chang'an and Wuling cars will soon hit Indonesian roads. With supplemental shipments, the industry predicts that the Chinese automobiles could capture 12 percent of the yearly 315,000 unit market by the end of 2001. The Rp 43 million to Rp 45 million (USD 3,945 to USD 4,130) price per car is a fraction of the price of comparable Japanese and European imports and less than half the retail price of Korean imports, which have captured the bulk of the market for imported vehicles. The Chinese cars are subject to an additional 75 percent luxury tax and 40 to 75 percent import tariff (depending on engine size). (Kia and other domestically assembled foreign cars are exempt from the import tariff.)
The Chinese cars, nevertheless, are entering the market at a time when sales are lagging. Based on first quarter returns, the Association of Indonesian Automotive Industries (GAKINDO) announced that car sales are likely to drop 15 percent in 2001 due to higher prices as a result of the slumping rupiah and lower economic growth. Automobile manufacturers also warned of decreased sales due to large hikes in the luxury tax. Minister of Industry and Trade Luhut Pandjaitan said that the GOI is aiming for Rp 330 billion (USD 28.9 million) in additional tax revenue from the auto industry.
CHANGING EXPORT FORECAST
Several key Indonesian sectors have adjusted their 2001 end-of-year predictions in light of first quarter returns, rising fuel prices, weakening rupiah exchange rate, and uncertainties in the international market. Traditionally strong sectors such as plywood, textiles, and footwear are predicting disappointing 2001 returns. More interestingly, emerging industries like auto parts and electronics have augmented their forecasts to reflect increasing global competitiveness and a strengthening consumer market in Indonesia. Sector organizations predicting 2001 returns include:
1.the National Textile Business Forum announced that textile exports are expected to fall 20 percent;
2.the Association of Indonesian Plywood Producers predicted a 12 percent decline in plywood exports;
3.the Indonesian Furniture and Handicraft Industries Association announced that the sector might not be able to reach its USD 1.8 billion sales goal.
4.the Ministry of Industry and Trade issued a statement retracting the previously predicted 10 percent increase for wood product exports;
5.the Association of Indonesian Footwear Producers predicted a 10 percent decline in shoe exports;
6.Electronic Marketer Sales Club reported a 60 percent increase in sales of electronic products during the first quarter of 2001. This included a 78 percent increase in television sales, 37 percent rise in refrigerator sales, 79 percent climb in air conditioner sales, and 45 percent increase washing machine sales. The growth in sales occurred in spite of a new 10 to 30 percent luxury tax;
7.the Indonesian Automotive Parts and Components Industries Association predicted a 22 percent increase in auto part exports;
The Best and the Worst of the Jakarta Stock Exchange
Jakarta's LQ-45 Index tracks the 45 most-traded stocks by capitalization. The top and bottom of the list for the first quarter 2001 include:
1.Bimantara Citra telecommunications + 80.6%
2.Alfa Retailindo cigarettes + 30.8%
3.Bhakti investment + 21.7%
4.Indah Kiat Pulp pulp and paper - 64.8%
5.Pabrik Kertas paper - 63.2%
6.Lippo E-Net internet - 52.6%
Kamis, 07 April 2011