BPPC applies for registration with WTO

JAKARTA (JP): The Clove Marketing and Buffer Stock Agency (BPPC), led by Hutomo (Tommy) Mandala Putra, has applied to the World Trade Organization (WTO) in Geneva for registration as Indonesia's clove import monopoly.

"We submitted the application to the WTO on June 26, but the decision is expected to be announced in October," I.D.G.S. Putera, the agency's secretary general, told journalists on Wednesday.

According to Putera, thus far the National Logistics Board (Bulog) has been registered at the WTO as the state trading enterprise which holds the monopoly over certain agricultural commodities.

He said that if the application is accepted, the BPPC will become the only clove importer to replace Bulog as the registered sole importer.

The latest government deregulation package, announced on May 23, appointed the BPPC as the sole clove importer, he added.

He was optimistic that the registration would be accepted by the WTO because, he said, Indonesia was the world's largest clove producer and also its largest consumer.

Savings

Putera added, however, that BPPC would refrain from importing because domestic clove stocks currently held by the agency are sufficient for three years of consumption.

Meanwhile, Putera said that the BPPC had decided to speed up the reimbursement of the clove farmers' compulsory savings from the 1993 harvest, which amount to Rp 93.58 billion (US$ 41.6 million), although the repayment of the savings from the 1992 harvest has yet to be completed.

"Although the reimbursement of the farmers' savings from the 1993 harvest should, according to the original plan, be paid in August, we will speed up the payment to July 12," he said.

He said that the repayment of the farmers' savings in 23 provinces would be made by BPPC Chairman Hutomo through the chairmen of the provincial associations of cooperatives on July 12, which is Cooperative Day.

The early payment of the savings is possible because listed cigarette company PT HM Sampoerna has bought 21,000 tons of the BPPC's clove stocks for Rp 200 billion (US$909,000).

He said that the national clove stock is currently 258,000 tons.

According to recent reports the agency has so far repaid only about Rp 84.5 billion in compulsory savings to the clove farmers, while the cumulative total of the savings already collected from clove sales in the last three years has reached Rp 251.1 billion.

A large number of farmers who have contributed to the savings program have been disqualified from withdrawing their own savings because they have failed to meet administrative requirements.

Farmers' savings collected in 1992 totaled Rp 68.7 billion and those collected in 1993 Rp 93.58 billion. (04)