Attorney General Singgih frees waste paper imports<\/p>\n
JAKARTA (JP): Attorney General Singgih has freed the
\nimportation of waste paper to reduce the production cost of
\nnewsprint, Industry Minister Tunky Ariwibowo confirmed yesterday.<\/p>\n
\"I got confirmation about the measure from Attorney General
\nSinggih this morning,\" Tunky said at his office yesterday.<\/p>\n
Tunky called a press conference, which was also attended by
\npaper producers, to straighten out the controversy over the tight
\ncontrol of waste paper imports.<\/p>\n
The paper producers, especially newsprint makers, greatly
\nwelcomed the measure which, they said, could slash procurement
\ncosts of waste paper by at least 40 percent.<\/p>\n
Allowing waste paper imports to be shipped in bulk, instead of
\nin container boxes as previously required by the Attorney
\nGeneral's Office, will reduce the shipment cost by 40 percent,
\nSuresh Kilam, managing director of the paper producing Sinar Mas
\ngroup, said yesterday.<\/p>\n
Kilam said the requirement for waste paper to be imported in
\ncontainers had increased shipment costs to as high as 110 percent
\nof production cost.<\/p>\n
Tunky declined to specify when the attorney general revoked
\nthe ruling it issued in the early 1980s to prevent the smuggling
\nof pornography and ideologically dangerous information, like
\ncommunist publications.<\/p>\n
Until Singgih admitted on Thursday that his office had ordered
\nwaste paper to be imported in containers, the industry ministry
\nhad assumed the ruling had been issued by the trade ministry and
\nEnvironmental Management Agency.<\/p>\n
The controversial ruling was unveiled early this week when
\nnewsprint producers, frustrated at being blamed for the steep
\nincrease in the price as well as the severe shortage of
\nnewsprint, blew the whistle.<\/p>\n
The producers complained that import costs were unnecessarily
\nhigh due to the container regulation because the containers had
\nto be checked by officials from both the trade and industry
\nministries as well as the Attorney General's Office.<\/p>\n
Skyrocketed<\/p>\n
However, Kilam warned against expecting lower paper prices
\ndespite the 40 percent reduction in the procurement costs of
\nwaste paper.<\/p>\n
\"The fact is that the international price of waste paper has
\nskyrocketed to US$410 a ton from only $110 in the first quarter
\nof last year,\" Kilam said.<\/p>\n
He even hinted that the price of newsprint might have to be
\nraised next month from its present Rp 1,700 ($0.75) a kilogram.<\/p>\n
Nonetheless, Tunky asked newsprint producers to at least
\nmaintain their selling prices.<\/p>\n
Lee Won Je, the managing director of PT Aspex Paper, which
\nproduces 80 percent of the country's newsprint, contended that
\nhis company and the other newsprint maker -- state-owned PT
\nKertas Leces -- have been losing money because the current sale
\nprice is far below production cost.<\/p>\n
\"We are actually subsidizing the prices of newsprint to
\nnewspaper companies,\" Lee added.<\/p>\n
Based on the waste paper price of $410 per ton, the production
\ncost of newsprint amounts to Rp 2,300 per kg, much higher than
\nthe current selling price of Rp 1,700, he added.<\/p>\n
\"We have been losing money as we have cut down our exports
\neven though we have to sell below our production costs to
\ndomestic users,\" Lee said.<\/p>\n
When asked why no investors are interested in the newsprint
\nindustry, Kilam said, \"As long as the government is involved in
\nfixing the price of newsprint, nobody will be interested in this
\nindustry.\"<\/p>\n
Private-to-private<\/p>\n
However, Tunky rejected Kilam's argument, saying that the
\ngovernment hadn't directly intervened in setting the price of
\nnewsprint.<\/p>\n
\"It's purely a private-to-private price making negotiation.
\nAnd the government is only the referee,\" Tunky said, referring to
\nperiodic negotiations between the Association of Pulp and Paper
\nProducers and the Association of Newspaper Publishers to set the
\ndomestic price of newsprint.<\/p>\n
Tunky denied press reports that stocks of newsprint would run
\nout in the next few days.<\/p>\n
\"I can assure you that stocks are adequate,\" Tunky stressed,
\nadding that the government had requested the two producers to
\nstop exports and give top priority to domestic need.<\/p>\n
Lee supported Tunky's statement, saying \"this month, the
\nsupply may be very tight but as of July, I can guarantee that
\nthere will be ample stocks.\"<\/p>\n
Tunky said the combined production capacity of Aspex and Leces
\nis 300,000 tons a year, while the national demand is only 150,000
\ntons per annum for newspaper consumption and 70,000 tons for non-
\npress needs.<\/p>\n
Tunky declined to estimate the newsprint price for next month
\nbut he said he would soon assign a special team to assess the
\nproduction costs of the two newsprint manufacturers. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/attorney-general-singgih-frees-waste-paper-imports-1447893297",
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