Rejected food exports cost Indonesia $100m

JAKARTA (JP): Indonesia currently loses up to US$100 million each year due to poor quality food exports, State Minister of Food Ibrahim Hasan said.

Speaking after a meeting with President Soeharto at Merdeka Palace, Ibrahim said that each year about 500 cases of Indonesian processed food exports worth $100 million were rejected by importing countries.

"In terms of taste Indonesian products are very good but often they do not meet the quality standards of importer countries," he said.

"So it is our duty to improve the quality standards of our food so it can be accepted by countries all over the world," he said.

He said countries that had strict food quality standards but were also Indonesia's main export markets were the United States, Japan and Australia.

Ibrahim said most food was rejected due to poor packaging, food ingredient compositions that did not match the standards of importer countries and because contaminants and pesticides were detected in the food.

Ibrahim said his office was currently formulating national guidelines on food quality standards based on international rulings.

"Currently we export without thinking about it, we don't pay attention to quality standards. Many food industries do not apply the ISO standards of quality management and environment," he said.

The government last year enacted a food law containing clauses on the regulation, supervision and control of foodstuffs to be distributed and sold.

Under the law industries are expected to produce food which meets safety, quality and nutrition requirements.

The law was expected to help Indonesia face challenges that may arise with the implementation of the World Trade Organization rules in the next century.

The Central Bureau of Statistics said exports of processed food in the 1996 calender year reached US$961.95 million, up from US$818.72 million in 1995 and $813.22 million in 1994.

In terms of value, the bulk of exports came mainly from processed fish, processed fruit and vegetables, processed cigarettes and tobacco and processed cocoa. (pwn)