Fruit association dismisses worries about imports
JAKARTA (JP): The Indonesian Fruit Association (HPI) has given assurances that fruit importation has not reached a level that could damage Indonesia's domestic fruit production and marketing, despite recent media reports suggesting the contrary.
HPI Chairman Goeswono Soepardi said on Saturday that although fruit imports have significantly increased in the last five years -- by 1,168 percent in volume and 936 percent in value for oranges and mandarins -- the figures are insignificant compared to Indonesia's production and consumption levels.
"The increase during the 1991-95 period may seem hefty but in terms of volume total fruit imports reached only 112,787 tons last year," Goeswono said in a speech to commemorate HPI's second anniversary.
By comparison, 5.8 million tons of fruit is produced domestically and consumption reaches about 6.3 million tons each year, Goeswono said in the speech, which was read by HPI treasurer Bernard Sadhani.
HPI, established on Oct. 22, 1994, brings together farmers, gardeners, businessmen, academics, practitioners and observers of fruit-related issues.
Indonesia currently imports apples, oranges (which includes mandarins), pears, grapes, dates, longans, lychees and durian.
Of these eight fruits, only imports of apples and oranges have significantly increased in terms of volume and value, Goeswono said.
The Ministry of Industry and Trade said total fruit imports increased sixfold during the last five years, from US$15.7 million in 1991 to $89.8 million last year, with an average growth of 50.8 percent a year.
Goeswono acknowledged that despite the rising import levels, the domestic fruit industry continues to develop at its own pace.
Several large national firms have lately expressed interest in the industry and are planning to open thousands of hectares of fruit estates, he said.
"This is because businesspeople want to increase the proportion of good-quality, exportable fruit, which currently accounts for only 20 percent of farmers' production," he said.
In recent months, the media have reported claims from government officials, academics and other observers that the increasing influx of imported fruits is threatening domestic producers.
Goeswono said that President Soeharto has also ordered the restriction of imports and establishment of a regulation to ensure their quality and safety. The regulation is currently being formulated by the Ministry of Agriculture, Ministry of Health and Ministry of Industry and Trade.
HPI secretary-general F. Rahardi said that rather than worry about whether imports threaten domestic producers, Indonesia should be more concerned about the foreign exchange which flows out of Indonesia to pay for imported fruit and the affect on the nation's current account balance.
"In the short term, we are not facing any threats. But this does not mean that the domestic fruit industry requires no reform," Rahardi told reporters.
The need for reform has become more urgent since a number of foreign investors recently expressed their intentions to establish fruit farms and industries in Indonesia, he said.
Rahardi said he believed the government's planned regulation on fruit imports is long overdue.
He said that much of the fruit imported by Indonesia is too old, of low quality or contains pesticide residues.
A 1994 study by the Trubus magazine and the PT Sucofindo surveyor company discovered 11 types of pesticides on imported apples, oranges and grapes, he said.
"All of these conditions result in low prices. So it's not correct to say that the low prices are due to greater efficiency in cultivation," Rahardi said.
Goeswono said the problems currently faced by the fruit industry include inferior mother-stocks which produce poor- quality fruit, inappropriate cultivation methods, red tape, lack of support facilities and high interest rates.
"The problem of high interest rates is completely the opposite to that in Australia, Malaysia, the Philippines and Thailand," he said.
Interest rates in those countries are less than 6 percent a year, while in Indonesia they range from 20 to 24 percent.
"It is no wonder, therefore, that more than 80 percent of the credits allocated for horticultural projects are idle," he said. (pwn)