RI imports more Australian wheat<\/p>\n
SYDNEY (Reuters): A new deal for Australian wheat with
\nIndonesia, even though the country remains one of Asia's hardest-
\nhit economies, brightened an otherwise threatened and dreary
\nAustralian grains market last week.<\/p>\n
The Australian Wheat Board's (AWB) announcement that
\nAustralian wheat would be used to commission a new Indonesian
\nflour mill in Semarang, northeast of Jakarta, marked the
\nbeginning of a likely continuing new market.<\/p>\n
It came as Indonesia's position as one of Australia's main
\nwheat markets remained firm, despite the financial turmoil which
\nhas rocked the country and as its wheat import system is shaken
\nby major changes required by the IMF.<\/p>\n
A spokesman for the AWB told Reuters on Friday that the
\nIndonesian market continued to tick along as normal despite the
\ncountry's financial problems. It was performing in line with
\nexpectations, with Indonesian import prices in line with softer
\nworld wheat prices generally.<\/p>\n
Against this background, commissioning of PT Sriboga Raturaya
\nFlour Mill's Semarang mill with Australian wheat made the mill
\nthe AWB's third customer in Indonesia.<\/p>\n
Until 14 months ago, PT Bogasari Flour Mills, Indonesia's
\nbiggest flour milling firm and a member of the giant Salim group,
\nwas the AWB's sole customer in the country through its monopoly
\non flour milling.<\/p>\n
PT Citra Flour Mill at Cilacap became the AWB's second
\ncustomer in Indonesia a year ago. Since then it has purchased
\nabout 280,000 tonnes of Australian wheat.<\/p>\n
Now the list is joined by the new Semarang mill, with a
\ncapacity of 450,000 tons a year against Bogasari's total capacity
\nof four million tonnes.<\/p>\n
Tim Dewan, AWB's Southeast Asian regional marketing manager,
\nsaid Friday that increased power for the Indonesian mills was
\ngood for Australian trade.<\/p>\n
\"We've had very good relationships with the mills over the
\nyears. To me it's a straight out positive,\" he said.<\/p>\n
As a result of changes which involve the winding down of the
\nformer state import monopoly Bulog, PT Bogasari, with its 25
\nyears of operation, is expected to become more profitable and to
\nincrease its market power.<\/p>\n
Indonesia, Australian wheat's second-largest market, imported
\njust under 2.5 million tons of wheat worth A$500 million to A$600
\nmillion last year, giving Australia a 60 percent share of its
\nmarket.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-imports-more-australian-wheat-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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