Minister supports nontariff barriers against rice imports

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)