Behind the rising trade relations between Indonesia and the U.S., a few relatively minor, yet irritating, problems still pose an impediment to the creation of a more robust relationship, according to a foreign trade representative and local business association.

During a visit to the country, a U.S. trade official, who asked not to be named citing internal regulations, said Thursday there were some procedural problems in Indonesia's trade and investment facilitation that the government had to address in order to help it boost its attractiveness.

On the investment side, scrapping bureaucratic procedures and business ownership restrictions, as well as the need for a better labor system, protection of property rights, and tax and customs law reform, should be priorities, the official said.

In trade, the U.S. says it had received reports from its food product exporters about unclear schemes used by Indonesia's customs services in conducting price checks on products, which often causes big price disparities from the prices set in the actual transactions.

Host countries are allowed to conduct arbitrary price checks if they suspect under-invoicing.

However, U.S. companies are complaining that Indonesia's list and methods for the price assessments are not transparent, and often result in much higher costs for duties.

"It makes the import procedures not entirely clear and transparent, and so can raise costs in unpredictable ways," a U.S. trade official said Thursday.

On the U.S. Trade Representative website, the U.S. government also complains that Indonesia's textile import licensing requirements severely restrict and distort trade between the two countries. Indonesia issued a decree in 2002 that allowed only firms with production facilities to use imported fabrics as input for processed products to obtain import licenses.

The decision was made to support the development of downstream garment industries as well as to protect local textile manufacturers.

Indonesian exporters also have their complaints in entering the U.S. market.

In the textile sector, manufacturers question the higher import duties imposed on Indonesian garment products, simply because the goods contain synthetic fiber.

Indonesian Textile Association secretary-general Ernovian G. Ismy claims that Indonesian products have received differential treatment, even though the raw cotton used was largely imported from the U.S.

Local textile producers also urged the U.S. government to investigate alleged transshipment of goods from China.

Food and beverage manufacturers also say that U.S. regulations concerning anti-bioterrorism have not been properly publicized, and that Indonesian exporters have often had their goods rejected on the spot.

The U.S. is Indonesia's second largest trading partner, with exports to the country amounting to US$9.46 billion, accounting for 14.46 percent of Indonesia's total 2005 exports.

Meanwhile, imports of goods from the U.S. amounted to $3.8 billion, or some 9.45 percent of Indonesia's total imports in 2005.