Govt mulls raising import duties<\/p>\n
Evi Mariani, The Jakarta Post, Jakarta<\/p>\n
The Ministry of Industry and Trade is considering the raising
\nof import duties on some farm commodities to curb their import,
\nin a bid to boost domestic production and to limit depletion of
\nthe country's foreign exchange reserves.<\/p>\n
The option forms part of ministry participation in the
\ngovernment's strategy to withdraw from the International Monetary
\nFund (IMF) program, according to Minister of Industry and Trade
\nRini Soewandi.<\/p>\n
\"We might raise import tariffs or modify the trade rules to
\nrestrict imports,\" Rini said on Friday after a working meeting
\nwith House of Representatives Commission V for industry and
\ntrade.<\/p>\n
\"We are currently studying all possibilities and have yet to
\nmake a decision on the method,\" the minister said, adding that a
\ndecision was likely to be reached within two months.<\/p>\n
Corn and soybeans are among the commodities likely to see a
\nrise in import duties, she said, adding the measure was expected
\nto encourage local farmers to boost production of the
\ncommodities.<\/p>\n
Currently, Indonesia imposes zero percent tariffs on soybeans
\nand corn. This has often drawn criticism from many quarters,
\nincluding the Ministry of Agriculture and non-governmental
\norganizations, given that Indonesia is allowed to impose tariffs
\nof up to 40 percent on corn and 27 percent on soybeans under
\nWorld Trade Organization rules.<\/p>\n
Furthermore, they said, all developed countries, including the
\nEuropean Union (EU), the U.S. and Japan, were still protecting
\ntheir agriculture sector.<\/p>\n
According to Rini, a decrease in the importation of the
\ncommodities would allow the government to save its forex reserves
\nand maintain them at a healthy level in order to boost investor
\nconfidence after Indonesia had withdrawn from the IMF program at
\nthe end of this year.<\/p>\n
After leaving the program Indonesia will not be eligible to
\ndebt rescheduling facilities from the Paris Club of creditors.<\/p>\n
Rini added her department was also giving consideration to
\nraising export tariffs on raw commodities like coffee beans to
\ncurb their export and to promote development of a domestic
\nprocessing industry.<\/p>\n
This would create more employment in the country, Rini said.<\/p>\n
As part of post-IMF economic reform programs the government
\nwould also boost exports to nontraditional markets like Eastern
\nEurope, the Middle East, Africa and South America, according to
\nthe ministry paper presented to Friday's hearing.<\/p>\n
Due to tighter competition nowadays in international trade,
\nIndonesia cannot rely too heavily on its traditional markets,
\nsuch as the U.S. and EU.<\/p>\n
The paper also said that the government would create a more
\nsupportive business climate by, for example, reducing the red
\ntape on import procedures.<\/p>\n
The paper also said the government would draft a trade bill to
\nensure legal certainty in doing business in Indonesia.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-mulls-raising-import-duties-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}