TRADE WITH INDONESIA (Statement by the Minister for Commerce and Industry)

Mr J. M. Jumabhoy: Mr Speaker, Sir, hon. Members will recall my repeated assurances to this House that Government is constantly alert to the possibilities of improving our trading relations with our neighbour, Indonesia. I am happy to announce, Sir, that the Indonesian Government has now agreed to free trade channels to Indonesia for 30 per cent counter-exports originating from Singapore in part payment for produce imports from barter areas. Hitherto, such exports had to revert solely to the barter areas. Now, local merchants may supply up to two-thirds of their counter-export commitments direct to the following Indonesian main ports in the form of rice, building materials, tools, machinery, transport items and so on. The ports are Belawan, Padang, Palembang, Tanjong Priok, Semarang, Surabaya, Macassar, Bandjermassin and Pontianak. The remainder one-third of export commitments may revert half as rice and half as building materials to the usual barter areas.

This long-pressed-for relaxation of control over destinations for 30 per cent counter-exports has been welcomed in local trade circles which, I understand, feel confident that improved trading relations with Indonesia will result.