Indonesian Political, Business & Finance News

Governement mulls new barrier on sugar imports

| Source: JP

Governement mulls new barrier on sugar imports

Tantri Yuliandini, The Jakarta Post, Jakarta

The government plans to impose a national standard for raw
sugar to help limit the inflow of sugar imports and prevent an
oversupply from illegal practices, such as dumping and under-
invoicing, a senior official of the Ministry of Industry and
Trade said on Monday.

"We will impose a national standard (SNI) for raw sugar as a
nontariff barrier against oversupply of imports," director of
agroindustry M. Yamin Rahman told reporters on the sidelines of
the appointment ceremony for the ministry's four new senior
officials.

He said that the proposal was still under discussion with the
ministry of agriculture and that it had not yet been decided
which ministry would issue the decree.

Indonesia produces approximately 1.5 million tons of sugar
annually, but consumes about 3 million tons a year.

Yamin said that the standards for sugar would not only limit
imports but would also force producers to produce high-quality
products, which would be able to compete with imported sugar.

Concern about the competitiveness of locally produced sugar
against cheaper imported products was raised as the country
braced itself for the upcoming liberalization in trade.

Separately, Minister of Industry and Trade Rini Soewandi
appointed four new senior officials in a ceremony on Monday.

Zaenal Arifin was appointed as the new director general for
chemical, agricultural and forest product industries, replacing
Gatot Ibnusantosa while Djoko Moelyono and Diah Maulida were
appointed as the ministry's expert staff, replacing A. Hamid
Machrus and Patuan Parluhutan Simatupang respectively.

Also replaced is Riyanto B. Yosokumoro, by Sudar, as the new
director general for foreign trade.

Riyanto was dismissed with honor under a presidential decree
dated Dec. 5, for his part in issuing a reprieve to 11 exporting
companies that exported logs, which was in direct violation of a
joint ministerial decree banning log exports.

The ministerial decree was issued jointly by the minister of
industry and trade and the minister of forestry to protect
Indonesia's forests from illegal logging.

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