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1. INDONESIA GETS ADDITIONAL TEXTILE EXPORT QUOTA FROM U.S.A.

Overtures made by the Indonesian Embassy in Washington to CITA (US-Committee for the Implementation of Textile Agreement) and US-Customs in relation to textile export quota to USA have brought about positive results. These negotiations were needed because Indonesia textile export quota to USA for 1998 has almost been used up in September. Which means that, if there were no additional quota, Indonesian textile manufacturers cannot export their products to USA for the months of October, November and December 1998. The result of negotiations by the Indonesian Embassy, assisted by the US Embassy in Jakarta, is that, counting from this October, Indonesia gets additional textile export quota from USA for 20 categories which can be used until the end of 1998. This additional quota was based on recalculation of the use of 1997 carry over, overshipment, and swing of various donor category.

A press release from the Ministry of Industry and Trade said that 80% of the additional quota was made Loan Quota which must be returned by subtracting the 1999 quota. Loan Quota is distributed proportionally to exporter who has to export immediately. The remaining 20% additional quota is given to small enterprises and cooperatives in the form of Flexible Quota, divided prorata, to realize export from orders received previously. Their quota next year will not be cut.

Table - 1 Additional textile export quota from USA for 1998
Category Base level Additional Unit

300/301 3,993,647.00 292,007.00 Kg
313-0 16,933,428.00 1,016,005.68 [m.sup.2]
315-0 26,886,342.00 3,980,982.00 [m.sup.2]
317-0/617-0/326-0 25,949,013.00 1,023,925.00 [m.sup.2]
336/636 609,941.00 28,185.00 Dozens

338/339 1,179,215.00 24,140.00 Dozens
340/640 1,452,234.00 92,207.00 Dozens
341 873,449.00 34,766.00 Dozens
347/348 1,597,458.00 178,537.00 Dozens
350/650 167,735.00 22,399.00 Dozens

351/651 471,976.00 21,265.00 Dozens
359-C/659-C 1,379,623.00 131,343.00 Kg
360 1,292,483.00 64,642.00 Nos
361 1,292,483.00 14,573.00 Nos
613/614/615 24,615,378.00 663,860.32 [m.sup.2]

625-629-0 27,472,821.00 1,640,861.74 [m.sup.2]
638/639 1,510,326.00 206,611.00 Dozens
644 452,369.00 82,335.00 Nos
645/646 764,269.00 32,885.00 Dozens
847 400,049.00 20,002.06 Dozens



Source: Department of Industry and Trade/Data Consult

Specifically, the number of exporters from small enterprise and cooperative continues to grow. This condition reflects increased involvement of small enterprise and cooperative in textile export. To illustrate, whereas in 1994 the number of small enterprise and cooperative was 50, in 1998 it has become 351. The number was fixed at the beginning Of the year and is effective until the end of December 1998.

Table - 2 Growth in number of small enterprise and cooperative that received textile export quota, 1994 - 1998
Year Number of Growth
 company (%)

1994 50 -
1995 52 4.0
1996 92 76.0
1997 209 127.0
1998 351 67.9



Source: Department of Industry and Trade/Data Consult

Utilization of quota

USA, Canada, Norway, and European Union fixed the number or value of certain type of textile export from a number of countries, particularly from developing countries like Indonesia. The contribution of quota market toward Indonesia's foreign exchange earnings in textile sector exceeded 50% recently. Last year's export value to these countries was US$ 1.3 billion of the total export of US$ 2.4 billion (excluding export under PERT). With better quota distribution to the exporting companies, the number of quota utilized kept increasing.

Table - 3 Use of textile quota, 1993 - 1997
Year Utilization
 (%)

1993 73.43
1994 64.00
1995 71.00
1996 82.00
1997 90.07



Source: Department of Industry and Trade/Data Consult
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Comment:1. INDONESIA GETS ADDITIONAL TEXTILE EXPORT QUOTA FROM U.S.A.
Publication:Indonesian Commercial Newsletter
Geographic Code:1USA
Date:Nov 9, 1998
Words:675
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