Indonesian Political, Business & Finance News

China Customs Suspends Permits for 19 Indonesian Bird's Nest Exporters

| Source: CNBC Translated from Indonesian | Trade
China Customs Suspends Permits for 19 Indonesian Bird's Nest Exporters
Image: CNBC

China’s General Administration of Customs (GACC) has temporarily suspended the export permits of 19 Indonesian swiftlet nest companies. The Head of the Indonesian Quarantine Authority (Barantin), Abdul Kadir Karding, stated that the primary issue is aluminium content exceeding the threshold set by the destination country.

Karding explained that the government is taking steps to improve the governance of the swiftlet nest industry, including tightening quality control (QC), improving regulations, and preparing for negotiations with the Chinese government. These measures come ahead of a scheduled visit by GACC authorities to Indonesia in July.

“We have had 19 companies suspended by China. In July, our colleagues from GACC China will come to Indonesia. The steps we are taking are strengthening communication with our embassy in China, and secondly, improving regulations and treatment to enhance QC in Indonesia,” Karding said during a press conference on Wednesday.

He added that the government is also seeking input from business players on what needs to be negotiated with China going forward. Karding emphasised that Barantin wants to show China that Indonesia is also firm with companies that do not meet standards.

“The point is, I actually want it so that it is not China that suspends them, but rather they are suspended here in Indonesia. We want to show that we are serious about handling domestic issues,” he stated. He noted that companies proven to be in violation could face heavier sanctions, including permanent revocation of their operating permits.

Based on evaluations, the main problem flagged by China is aluminium content exceeding 100 ppm. The government is therefore working to improve various aspects so that the suspended companies can regain export access to China, while also opening opportunities for new exporters.

When asked about solutions to reduce the aluminium content, Karding said his agency is still investigating the source of the contamination. He also mentioned that Barantin will tighten law enforcement and streamline the licensing bureaucracy through digitalisation to prevent lengthy permit processing times.

Karding assessed that these improvements are crucial, given that Indonesia is the world’s main supplier of swiftlet nests. “We are the biggest player in the world for swiftlet nests. The world’s supply is around 70-80% from us. This involves large capital and a large workforce. Therefore, we must improve our domestic governance so they do not face difficulties,” he said.

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