New Zealand Trade Minister Tim Groser assured Indonesian dairy producers on Tuesday that the elimination of import tariffs on dairy products from New Zealand to Indonesia under the ASEAN free trade framework would not affect local farmers.
Indonesia's farmers have voiced fears that the tariff elimination will be followed by an influx of New Zealand dairy products, further hurting their sales.
Groser said the elimination of the current import tariff of about 5 percent would hardly affect the retail price of its products, shrugging off fears that cheaper prices would create unfair competition with local producers.
Groser is in Jakarta to attend the inauguration of President Susilo Bambang Yudhoyono.