Nine companies chosen to import iodized salt

JAKARTA (JP): The government has appointed nine companies to import iodized salt to meet a shortfall on the domestic market, Minister of Industry and Trade Rahardi Ramelan said here on Thursday.

"Their licenses have been issued and they are free to import salt," Rahardi said, adding that the import of salt, which was previously banned, would begin this month.

Imports will be stopped if local production rises to meet domestic demand, he added.

The price of salt here has jumped from Rp 250 per kilogram last month to Rp 800 per kilogram last week due to a scarcity in supply.

The ministry has estimated that the country's salt production will drop by 50 percent this year as a result of the prolonged rainy season.

Domestic production was initially forecast to reach 1.1 million tons this year, while demand was expected to be 1.15 million tons over the same period. Domestic demand consists of 609,000 tons for household consumption, 360,000 for salted fish and food products and 180,000 tons for industrial use.

According to the report, the government imported 756,000 tons of salt between January and July this year.

Antara reported that seven of the nine companies licensed to import salt would buy a total of 805,000 tons of salt from Australia and India.

The companies are PT Union Chemical which will import 200,000 tons of salt, PT Garindo (60,000 tons), PT Surya Mandiri Utama (45,000 tons), PT Budiono (160,000 tons), PT Inti Laut (40,000 tons), PT Susanti Megah (100,000 tons) and the state salt producer PT Garam (200,000 tons).

Rahardi did not name the other two companies. (gis)