Govt may revoke chicken leg import ban

Govt may revoke chicken leg import ban

Adianto P. Simamora, The Jakarta Post, Jakarta

The government is considering revoking a two-year ban on
chicken leg imports from the United States after the World Trade
Organization (WTO) raised concern over the protective measure.

According to a report delivered by Indonesian government to
the WTO's Trade Policy Review Mechanism (TPRM) meeting in Geneva,
the government, after revoking the ban, may raise import tariffs
on chicken legs from its current level of 5 percent in a bid to
protect the domestic market.

"Although the plan is still under review, the government may
decide to rescind the import ban (on chicken legs) and will
protect the domestic market by raising the tariff," a report
said.

The WTO assessed Indonesia's economic and trade policies over
the past four years in Geneva on Monday to determine whether or
not the policies violated the WTO ruling.

Minister of Industry and Trade Rini MS Soewandi said that the
WTO had sought clarification from Indonesia over the ban on
chicken leg imports.

"We stress that chicken leg imports must meet the halal
criteria and importers must get the halal certification," she
said.

According to the halal criteria, the chickens must be
slaughtered in accordance with Islamic tradition.

"We (the government) are now holding talks with relevant
officials as to whether to allow chicken leg imports after they
(importers) meet such halal criteria," Rini told reporters after
opening a warehouse exhibition on Wednesday.

The import of chicken legs from the United States, the world's
largest exporter of cheap chicken leg quarters, has been a
controversial issue in Indonesia over the past two years.

The Ministry of Agriculture has banned U.S. chicken leg
imports in May 2001 to protect local poultry farmers and
consumers amid concerns that the U.S. products were not halal.

In another development, Rini said that the government had also
canceled a plan to regulate rice imports.

"We have decided not to limit rice imports into the country as
the harvest season has passed," she said.

In June, she disclosed a plan to limit rice imports to avoid
an oversupply amid the harvest season.

Under the plan, rice imports can only enter the country
through designated seaports. Currently, rice can enter the
country via any seaport.

Rini recently also sent a letter to Coordinating Minister for
Economic Affairs Dorodjatun Kuntjoro Jakti asking him to ban the
rice imports for at least three months.

The price of unhusked rice dropped to around Rp 800 (about 9.7
U.S. cents) per kilogram recently, compared to the government's
target of Rp 1,095 per kg. Many said that the drop was mainly due
to the influx of cheaper imported rice.

The country's rice output is expected to reach about 32
million tons this year.