HIGHLIGHTS OF INDONESIA'S ECONOMIC REFORM PACKAGE

HIGHLIGHTS OF INDONESIA'S ECONOMIC REFORM PACKAGE

Provisions of Indonesia's economic reform package of interest to people doing business with that country include:

* Amending banking law to allow full privatization of state banks.* Lifting restrictions on branching of foreign banks by February.

* Cutting import tariff on food items to a maximum 5 percent.

* Abolishing local content rules on dairy products from Feb. 1.

* Cutting tariff rates on nonfood agricultural products by 5 percentage points.

* Abolishing import restrictions on all new and used ships.

* Phasing out export taxes, beginning with leather, cork, ore and waste aluminum products on Feb. 1. Replace some export taxes with rent taxes to discourage overexploitation of natural resources.

* Eliminating all types of export restrictions, such as quotas, within three years, except for health or security reasons.

* Lifting export ban on palm oil after March; set export taxes on palm oil at rates not exceeding 20 percent.

* Removing restrictions on foreign investment in palm oil plantations on Feb. 1, and on wholesale and retail trade by March.