Jakarta, Aug 13 (Antara) -- President Joko Widodo's move to appoint Rizal Ramli, an outspoken economist, as the coordinating minister for maritime affairs is expected to help resolve the issues related to salt at home.
Salt production by local farmers in the country has been facing stiff competition from an influx of imported salt in the domestic market, which allegedly involves a salt cartel.
"This is an important issue that must be resolved to realize the government's efforts to achieve food sovereignty," General Chairman of the Indonesian Traditional Fishermen's Association (KNTI) Muhammad Riza Damanik said on Thursday.
The KNTI has urged Minister Rizal Ramli, who was the coordinating minister for economic affairs during former president Abdurrahman Wahid's term, to investigate the alleged presence of a salt cartel.
Damanik stated that the presence of a cartel in the salt business was (allegedly) the main factor hampering efforts to achieve sovereignty in salt production.
The cartel is strong because it is hiding behind unharmonious relations between the Ministry of Maritime Affairs and Fisheries and the Ministry of Industry, he explained.
So far, salt farmers have complained about the import of salt and that domestic production has dropped due to the commodity's declining prospects in the country.
According to Minister of Maritime Affairs and Fisheries Susi Pudjiastuti, the price of salt in the domestic market is some Rp750 to Rp1,500 per kilogram, while salt from Australia, for instance, costs only Rp500. Therefore, importers earn considerable profit.
If this condition is left unheeded, domestic salt businesses will only import the product, she cautioned.
As a result, the interest of various sides in investing in and working to advance the domestic salt business will decline.
"This is the main reason why the interest of farmers is harmed. The price of the commodity at the farmers' level will be very low," Pudjiastuti added.
In a meeting held recently with salt importers and farmers, the minister noted that the salt importers did not indicate any goodwill. "We intended to discuss the issues faced in making the country a self-reliant producer, but the salt importers showed no goodwill," she said.
She admitted that she could understand the reason for the importers' behavior as the quality of salt produced by farmers was not good. However, they should control their imports to prevent an influx of imported salt during the country's salt harvest season.
In addition, the Ministry of Trade regulates when salt can be imported, she added.
"We believe that the salt importers ignore it (the regulation) and do not care for the fate of the farmers. They are only concerned with profit," she remarked.
Furthermore, the salt issue is also believed to be related to the storage time problem at Indonesian ports. This matter is now being investigated by the police.
Long storage time is a result of delays in loading and unloading activities, the impacts of which lead to disadvantages and reduce the competitiveness of the nation.
This is believed to involve certain individuals from inter-related ministries. Due to this, Minister Pudjiastuti expressed hope that the Jakarta Police's investigation of the storage time case will also include the issue of importation of salt.
"I hope the police investigate the importation of salt in the country, as well," she said on August 5.
She affirmed that her ministry had coordinated with the Jakarta Police and had held a meeting to discuss various issues regarding the maritime sector, such as those related to import permits and processing and marketing of fisheries products.
The investigation of the storage time case at ports should also include salt-related issues. It is believed that salt farmers at home still have high spirit to cultivate their fields, Pudjiastuti noted.
Earlier, the Business Competition Supervisory Commission (KPPU) said it was planning to summon seven companies allegedly involved in salt cartel practices, which caused salt prices to fall during farmers' harvest time.
"The KPPU will summon a number of parties suspected to be involved in imported salt cartel practices," KPPU Chairman Muhammad Syarkawi Rauf stated after attending a closed-door meeting with Minister Pudjiastuti on Tuesday, August 11.
Rauf added that the KPPU already secured data on the seven companies with regard to their alleged cartel practices. They will be summoned next week.
The KPPU chief further noted that his commission will summon not only salt importers but those suspected to be involved in oligopsony practices on local salt production, as well.
"There are two problems with regard to salt. There is imported salt as well as local salt. Regarding local salt, the KPPU had once conducted an investigation in a market where oligopsony practices were suspected to prevail. Farmers greatly depended on this market, but it was controlled by a very small number of buyers. These buyers were companies that controlled and decided prices," he explained.
In the first stage of its investigation of the alleged salt cartel, Rauf pointed out, the commission is planning to compile the evidence it has already gathered. With evidence in hand, the KPPU will then decide the impact of their activities on farmers and the people.
***1***(A014/INE)EDITED BY INE (T.SYS/A/BESSR/A. Abdussalam) 13-08-2015 22:21:48 |
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