Minister supports nontariff barriers against rice imports

JAKARTA (JP): The Minister of Industry and Trade, Luhut Binsar Panjaitan, said on Friday that he supported the State Logistics Agency's (Bulog) plan to impose non-tariff barriers against imports of rice next year.

He said that the action was needed to curb the rampant smuggling of rice into the country which puts pressure on the price of rice for local farmers.

Bulog chief Widjanarko Puspoyo said the non-tariff barriers will not violate free trade regulations set by the World Trade Organization (WTO) as it was implemented to curb illegal imports.

"We will inform the WTO that we are just administering the importation of rice. This is not a ban," he told reporters after a meeting with the Minister of Industry and Trade.

As a member country of the World Trade Organization, Indonesia has pledged to liberalize its agricultural sector by eliminating various non-tariff restrictions against the imports of farm products.

Private importers that pay the designated import duty could still import rice, Widjanarko added.

However, these imports could only be done at a specific time so as not to undermine farmers, he said, explaining that the import of rice is forbidden during the harvest months of March, April, and May.

Widjanarko also said that unloading rice cargoes in seaports located near rice-producing areas such as North Sumatra was also prohibited.

He said that he found many cases of illegal imports of rice from Vietnam, often by understating the actual volume of rice imported into the country.

Indonesia is expected to produce 50 million tons of rice this year compared to 51.18 million tons produced last year. Imports for this year are predicted to reach two million tons, down from last year's 2.5 million tons and 3.6 million tons of rice imported in 1999.

Aside from the planned non-tariff barriers, Bulog had already imposed a 30 percent import tariff on rice in early 2000, but illegal imports are continuing to swamp the market.

Widjanarko said that Bulog will cooperate with the Ministry of Industry and Trade, as well as the Ministry of Finance to restructure the customs and duty office so there will be no more smuggling through loopholes in the administration.

Separately, Luhut said the ministry had banned imports on corn, leather, and farm products from the European Union and South America as a preventive measure against the foot-and-mouth epidemic. (tnt)