Flour producers seek exclusive import rights<\/p>\n
JAKARTA (JP): Local flour producers called on the government
\non Thursday to give them sole import rights in order to stay
\nafloat amidst stiffer competition from abroad, Antara reported.<\/p>\n
Bustanil Arifin, president of PT Sriboga Ratu Raya Flour
\nMills, said such exclusive rights should be given unless the
\ngovernment agreed to producers' demand for a 30 percent import
\nduty to stem dumping practices.<\/p>\n
The rights could be given to small producers who have been
\nhurt by the unfair competition from imports, Bustanil, a former
\nchairman of the State Logistics Agency (Bulog), said.<\/p>\n
"We cannot compete against cheap imports, and we cannot repay
\nour bank loans," he said.<\/p>\n
Sriboga, based in Semarang, Central Java, is one of three
\nsmall flour producers in the country with an annual capacity of
\n400,000 tons. The other two are PT Panganmas Inti Persada Flour
\nMills in Cilacap, Central Java (300,000 tons) and PT Berdikari
\nSari Utama Flour Mills in Makassar, South Sulawesi (400,000
\ntons). The local wheat flour industry is dominated by PT ISM
\nBogasari with an annual capacity of 3.6 million tons from its two
\nmills in Jakarta and Surabaya, East Java.<\/p>\n
The four producers last week called on the government to
\nimpose a countervailing duty against imports from France,
\nGermany, Belgium, Australia and the United Arab Emirates.<\/p>\n
The national anti-dumping committee is currently looking into
\nthe allegations and is expected to make a ruling in three months.<\/p>\n
Bustanil was pessimistic that the government would agree to
\nthe duty proposal because the International Monetary Fund (IMF)
\nhad already rejected it, according to Antara.<\/p>\n
"Small producers could close down and the IMF does not care,"
\nhe said.<\/p>\n
Indonesian flour mills rely on imported wheat, mostly from
\nAustralia, Canada and the United States.<\/p>\n
Bulog lost its monopoly right to import wheat, along with the
\nelimination of state subsidies in 1998. The government also
\nslashed import duty on flour to zero.<\/p>\n
The market liberalization since then has led to rising flour
\nimports and declining wheat imports.<\/p>\n
Wheat imports declined to 3.4 million tons in 1998 from 3.6
\nmillion tons in 1997 and 4.1 million in 1996. Flour imports rose
\nto 24,000 tons in 1998 from 15,200 tons in 1997. (10)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/flour-producers-seek-exclusive-import-rights-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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