Government divided over countertrade deals<\/p>\n
Adianto P. Simamora, The Jakarta Post, Jakarta<\/p>\n
The Ministry of Agriculture protested the plan by Minister of
\nIndustry and Trade Rini M. Soewandi to import more rice as part
\nof her initiative to push countertrade deals with other nations.<\/p>\n
Iskandar Nuhung, director general for the processing and
\nmarketing of agriculture products at the Ministry of Agriculture,
\nsaid the entry of more imported rice into the country would cause
\nsuffering to the millions of local rice farmers.<\/p>\n
\"We don't have a problem with the countertrade program, but we
\ndon't agree if the Indonesian products are exchanged with rice
\nfrom other nations,\" he told The Jakarta Post over the weekend.<\/p>\n
The rice imported via the countertrade program would be sold
\nmuch cheaper at home as it would be exempted from the 30 percent
\nimport tariff, analysts have said. This will likely create a
\ndownward pressure on the price of local rice.<\/p>\n
Iskandar said that his office had already sent a letter to the
\nOffice of the Coordinating Minister of the Economy to protest the
\nrice import plan.<\/p>\n
\"We have also expressed objection to the Ministry of Industry
\nand Trade via Sudar SA (director general of international trade
\naffairs), but there has been no response yet,\" Iskandar said.<\/p>\n
Rini recently signed memorandums of understanding (MoUs) with
\nseveral nations to boost countertrade deals with other nations
\nincluding with Thailand, Cambodia, Vietnam, India, and China.<\/p>\n
The move is aimed at helping improve the country's dwindling
\nexports amid the current global economic slowdown.<\/p>\n
Under the MoUs with Thailand and Cambodia, Indonesia would
\nimport 200,000 tons and 100,000 tons respectively, in exchange
\nfor the export of various products such as aircraft, train cars,
\nfertilizers and agriculture equipment. The deal with Thailand is
\nvalued at around US$40 million.<\/p>\n
Analysts have said that Rini should have talked with other
\nministers concerned, including with the minister of agriculture,
\nin pursuing the countertrade deals so as not to cause damage at
\nhome. They said that the import of more rice, for instance,
\nwould put pressure on the price of rice here.<\/p>\n
Iskandar said that rice imports must be strictly limited
\nbecause the economy of some 20 million families or equivalent to
\nthe lives of 100 million Indonesian people were still dependent
\non rice farming.<\/p>\n
\"We need to help local farmers by boosting the price of this
\ncommodity at the local market,\" he said.<\/p>\n
He said that Rini's countertrade program should not undermine
\nthe interest of the nation.<\/p>\n
There has been growing pressure on the government to raise the
\nimport tariff on rice to help limit the influx of cheaper
\nimported rice.<\/p>\n
The State Logistics Agency (Bulog) is planning to import at
\nleast 1 million tons of rice this year as part of its rice
\nreserves strategy.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-divided-over-countertrade-deals-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}