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.