Govt extends export ban on subsidized goods

Govt extends export ban on subsidized goods

JAKARTA (JP): The government has decided to extend the export
ban on subsidized goods until it has had time to prepare
replacement export taxes, an industry and trade ministry official
said.

The ministry's director general of international trade, Djoko
Moeldjono, said yesterday that taxes had yet to be prepared to
replace the ban on the export of subsidized commodities so export
ban would continue to apply until further notice.

"Export ban will remain in place because the government is
still discussing taxes to replace them," Djoko said.

He said the Ministry of Industry and Trade had informed the
director general of customs and excise about the extensions and
said they would remain in place until export taxes were set by
the finance minister.

"Export taxes will be prepared as soon as possible," Djoko
added.

The government placed a three-week ban on the export of
several subsidized commodities on July 28 to prevent profiteering
through the reexport of subsidized imports.

The ban was also imposed to ensure an adequate supply of the
commodities to which it applies were available at an affordable
price on the domestic market.

The ban covers fishmeal, unhusked rice, milled rice, broken
rice, wheat, wheat flour, rice flour, soybeans, sugar and
kerosene.

"The monetary crisis has created a disparity between local and
international market prices, triggering an outflow of goods
including products which are subsidized by the government,"
Minister of Industry and Trade Rahardi Ramelan said.

"Although export ban is not the correct way to deal with this
situation, it is necessary in the short term interests of the
nation."

Commodities already subject to export taxes such as crude palm
oil and its derivatives are not included in the ban. (gis)