More world market access called for<\/p>\n
JAKARTA (JP): An official said yesterday that more and more
\nIndonesian agricultural commodities should enter the world
\nmarket, irrespective of their prices, as market access is
\nbecoming the key in international commodities trading.<\/p>\n
\"Even though the prices of our commodities are decreasing on
\nthe world market, better market access will be our strength,\"
\nPaian Nainggolan, director of the trade research center at the
\nMinistry of Trade, said at a seminar on quality improvement of
\nplantation crops here yesterday.<\/p>\n
Paian contended that commodity prices on the international
\nmarket are tending to decline over time, not only because output
\nwas increasing, but also because the number of producers was
\nincreasing.<\/p>\n
He said Indonesia's commodity producers and traders should be
\nwell-prepared to enter global competition by penetrating new
\nmarkets and offering competitive prices.<\/p>\n
\"We cannot avoid competition. And when competition is gets
\ntougher, it simply means our margin is shrinking,\" he said. \"We
\nhave to accept it. Otherwise, we will be beaten by our
\ncompetitors.\"<\/p>\n
He noted that the government currently still protects certain
\nagricultural products from foreign competition by applying high
\ntariffs and import restrictions.<\/p>\n
Indonesia's commitment to the World Trade Organization (WTO),
\nwhich overseas global reductions of tariff and non-tariff
\nbarriers, includes the lowering of tariffs on 1,341 agricultural
\nproducts.<\/p>\n
Of the committed agricultural products, the import tariffs on
\n1,014 items are set at 40 percent, 300 items at more than 40
\npercent and only 27 items at less than 40 percent.<\/p>\n
\"However, sooner or later we have to increase our commitments
\non agricultural products to the WTO,\" Paian said, adding that the
\npurpose of the WTO was to make agricultural products accessible
\nto as many people possible.<\/p>\n
Echoing Paian's suggestion on enlarging market access, Rachmat
\nSoebiapradja of the Agro-Industry Research and Development Center
\nsaid that Indonesia's commodity producers and traders should pay
\ncloser attention to international demand for better quality.<\/p>\n
\"By improving the quality of our exported commodities, we can
\nimprove our country's image as well as enlarge our market
\naccess,\" Rachmat said.<\/p>\n
He noted that currently Indonesia has a bad reputation
\nregarding cocoa exports to the United States. \"As a result, it
\nimposes an automatic retention on our cocoa,\" he said.<\/p>\n
Meanwhile, according to the Indonesian Cocoa Association,
\nIndonesia is projected to be the world's second largest cocoa
\nproducer for the 1995\/1996.<\/p>\n
The world's annual production of cocoa is now estimated at 2.4
\nmillion tons, with Indonesia producing 280,000 tons.<\/p>\n
Last year, Indonesia's exports to the United States
\nencountered 676 cases of detention, worth US$226.71 million,
\nalmost 12 times the value of detentions in 1988. Of the total
\nnumber of cases, 456 concerned plantation crops, such as cocoa,
\ncoffee and latex.<\/p>\n
The most common reason for detention of Indonesia's products
\nby the U.S. Food and Drug Administration was insect filth and
\nother contamination.<\/p>\n
The Minister of Trade's Decree No. 22\/Kp\/II\/1995 requires all
\ncommodity producers and exporters to abide by quality
\ncertification requirements set by the National Standardization
\nCouncil. The decree allows a one-year period, ending next
\nJanuary, for commodity producers and exporters to make the
\nnecessary adjustments to the requirements.<\/p>\n
\"Such requirements should not be seen as barriers but as
\nstimuli to improve the quality of our commodities so that they
\nwill be able to compete better on the world market,\" said
\nRachmat, who is a former director general of plantations. (rid)<\/p>",
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"sponsor": "Okusi Associates",
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