AIPE says govt plan peppered with problems<\/p>\n
Adianto P. Simamora, The Jakarta Post, Jakarta<\/p>\n
The Association of Indonesian Pepper exporters (AIPE) called
\non the government on Wednesday to abort its plan to set up a
\njoint marketing body on white pepper, saying the move would hurt
\nrather than improve the country's exports.<\/p>\n
Speaking at a press conference, association chairman Sumadhi
\nsaid the establishment of the body would allow other countries to
\ngrab a greater share in international markets, diminishing
\nIndonesia's portion.<\/p>\n
\"It (the establishment of the body) will hurt our exports and
\nour competitors will use the moment to take over our market
\nshare,\" Sumadhi said.<\/p>\n
Indonesia is the world's largest white pepper producer,
\naccounting for between 70 percent and 80 percent of the world's
\nsupply. However, the most popular type of pepper in the world is
\nblack pepper, which accounts for 80 percent of the world's total
\nmarket. White pepper controls only 20 percent of the market.<\/p>\n
The country's white pepper, labeled on the international
\nmarket as \"Muntok White Pepper\", is mostly produced in the
\nislands of Bangka and Belitung in the Riau archipelago. Muntok is
\nthe seaport of Bangka.<\/p>\n
Indonesia also produces black pepper, but its amount is not
\nsignificant.<\/p>\n
Sumadhi said the plan to establish the body was recently
\nunveiled by a senior official at the Ministry of Industry and
\nTrade with the purpose of boosting the price of the commodity and
\nas such raise farmers' welfare.<\/p>\n
The prices of white and black pepper have been decreasing over
\nthe past several years, slumping to about Rp 22,000 (US$2.40) and
\nRp 14,000 per kilogram respectively, from Rp 80,000 and Rp 75,000
\nin 1998.<\/p>\n
Sumadhi noted that Indonesia should learn from its past
\nmistakes.<\/p>\n
\"Indonesia made similar agencies in the past, but they failed
\nto prop up pepper prices in international markets,\" he said.<\/p>\n
He said the government once formed the Indonesian Pepper
\nMarketing Body, which functioned for 20 years from 1969. It also
\nformed sole agents in several countries, including B.V. Unipro in
\nAmsterdam for European markets and CITC in New York for the
\nUnited States' market.<\/p>\n
Rather than raising farmers' welfare, such agencies led to
\nmonopoly practices, limiting the number of exporters.<\/p>\n
Aside from Indonesia, the world's major pepper producers are
\nBrazil, India, Malaysia, Vietnam and China.<\/p>\n
Indonesia is especially worried about Vietnam, which has
\nbecome a major producer in just ten years.<\/p>\n
Vietnam, which started exporting pepper 10 years ago, exported
\nabout 90,000 tons of black pepper last year, larger than
\nIndonesia's black and white pepper exports of 50,000 tons that
\nyear. The exports from Vietnam have significantly increased world
\npepper supplies, contributing to the price drop.<\/p>\n
\"Vietnam has proven its productivity. We are afraid that
\nsomeday it will take over our market share in white pepper,\" he
\nsaid.<\/p>\n
Sumadhi predicted Indonesia's pepper exports would also
\ndecline to about 40,000 tons this year from last's year's target
\nof about 45,000 tons as output was projected to fall due to
\ndraught.<\/p>\n
Indonesia exports white pepper to European countries and black
\npepper to the United States.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/aipe-says-govt-plan-peppered-with-problems-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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