Remove tariffs on newsprint: Ministries<\/p>\n
JAKARTA (JP): The ministries of industry, trade and
\ninformation, as well as publishers and paper producers, agreed
\nyesterday to propose that the Ministry of Finance cut the import
\ntariff on newsprint to zero percent.<\/p>\n
\"We all have agreed to propose to the Minister of Finance on
\nthe reduction of the import tariff on newsprint from the current
\nlevel of five percent to zero percent, a level already applied to
\nhigh quality paper,\" Minister of Industry Tunky Ariwibowo said
\nafter a meeting on ways to counter the current paper crisis.<\/p>\n
Yesterday's meeting was attended by officials of the three
\nministries and executives from the Association of Newsprint
\nProducers (SPS), the Association of Indonesian Pulp and Paper
\n(APKI) and the Association of Indonesian Book Publishers
\n(APKI).<\/p>\n
Handjojo Nitimihardjo, SPS's acting chairman, hailed the
\nagreement on import tariff reduction, saying that \"in the long
\nrun, it will be good for newspaper publishers\".<\/p>\n
Only Lee Won Je, managing director of PT Aspex Paper, which
\nsupplies 80 percent of all domestic newsprint needs, declined to
\nsay much about the proposal to the finance ministry to lower the
\nimport tariff to zero.<\/p>\n
\"We import almost 100 percent of our raw materials and we will
\nnot be protected anymore. You can imagine by yourselves what will
\nhappen to my company,\" Lee told journalists.<\/p>\n
In addition to Aspex, Indonesia has only one other company
\nproducing newsprint, state-owned PT Kertas Leces in Pasuruan,
\nEast Java, which produces only a small amount of newsprint, about
\n3,000 tons per month. Besides, Leces' products cannot accommodate
\ncolor print.<\/p>\n
Handjojo said that for the time being, even a zero percent
\nimport tariff will not entirely resolve the current newsprint
\ncrisis \"because international prices of newsprint are
\nincreasing.\"<\/p>\n
Problem<\/p>\n
\"The problem we are facing now is on the supply,\" he said.
\n\"Imagine ... some small-scale publishers just got newsprint
\nyesterday for tomorrow's editions,\" Handjojo said.<\/p>\n
Commenting on Handjojo's complaint, Suresh Kilam, managing
\ndirector of the paper division of the Sinar Mas Group, said that
\nthe newsprint shortage is happening only to the 200 small-scale
\nnewspaper publishers which buy newsprint from agents, not
\ndirectly from producers. The 200 publishers need only a total of
\n1,000 tons per month.<\/p>\n
\"Actually newsprint producers have abided by the agreement
\nwith SPS, allocating 12,000 tons of newsprint per month at a
\nprice of Rp 1,700 (US$1.32) a kilo until the end of this month,\"
\nKilam said.<\/p>\n
Minister Tunky called on newsprint producers yesterday to
\n\"discipline\" their agents if it is found that they are guilty of
\nhoarding newsprint.<\/p>\n
Tunky said he has asked SPS to give its views on better ways
\nof supplying newsprint from producers to newspaper publishers and
\non reasonable prices for newsprint.<\/p>\n
Yesterday's meeting did not discuss the price of newsprint for
\nnext month's deliveries even though the current price of Rp 1,700
\nper kilogram applies only until the end of this month.<\/p>\n
Informed sources at APKI said newsprint producers want the
\nprice to be increased to Rp 2,500 a kilo because the production
\ncost has increased to Rp 2,300 a kilo due to the increasing
\ninternational prices of waste paper and pulp -- a raw material
\nfor newsprint production.<\/p>\n
Tunky yesterday repeated his assurance to the public that
\n\"stocks for newsprint are adequate, factories are running
\nnormally and there is no problem at all with raw materials.\"
\n(rid)<\/p>",
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"sponsor": "Okusi Associates",
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