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)