Jakarta, May 11 (Antara) - The government needs to improve its policy on salt imports for industrial purposes and stop the importation of the commodity that is used for food industry.
"The government needs to protect all sides (industry and farmers). It has to seek best solutions for both, industry and salt farmers, so that salt business runs well, benefiting both parties," Achmad Budiono, the president director of the state-owned salt company PT Garam, said in Jakarta on Monday.
The trade minister had issued a decree No. 125/M-DAG/PER/12/2015 on salt imports. Signed on December 29, 2015, the decree stipulated that salt for industry could be imported by firms which owned a producer importer identity number (APIP).
Industrial salt importers are not allowed to sell the salt to consumers in regular markets or change the ownership of the imported salt to other parties.
"The problem is that all industrial salt users are allowed to import salt but they are not allowed to sell it. Certain provisions in this regulation are not clear because salt can be imported through many entry points. It should ideally be done through only one gate," noted Achmad.
This is a problem for industrial salt users whose number is small. Achmad said his side has made several proposals to solve the problem.
"The problem is that the number of industrial salt users is small. It is impossible for them to establish their own import divisions. They prefer the registered importer (IT) mechanism. So, the IT mechanism should be maintained to accommodate the interests of the small number of industrial salt users," remarked Achmad.
He also expressed the hope that the government would stop the import of industrial salt for various food products because the need of the food industry for salt could still be met through domestic production.
"The import of salt for various food products should be stopped. Food products could be included in the consumption cluster, not in the industry group. In the past, it was possible for the locally produced salt to meet the needs of various food product industry," stated Achmad.
He said the various food producing industrial units were included in the industrial salt user cluster when import of industrial salt was on the rise, while, in fact, local salt was able to meet the need.
Now, about 80 percent of the farmers' salt is absorbed by the domestic salt factories. Local salt could be supplied to various food product industrial units.
"If the trade minister's decree No. 125/2015 is implemented, the food product industry will not purchase salt from the local farmers because imported salt is cheaper. If there is no purchase, local salt factories will go bankrupt. So, the salt farmers will be at a disadvantage," said Achmad.
Data at the PT Garam showed that the national need for salt has reached 4.04 million tons per annum. It consisted of 1.3 million tons of consumer salt and 2.74 million tons of industrial salt.
Salt imported for industry included 2.14 million tons for chemical industry (ACP), 1,000 tons for pharmacies and 40,000 tons for oil mining.
"It is not a problem for the chemical industry to import 2.1 million tons of salt, but various food producing units' need can be met by the locally produced salt," said Achmad.
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.
Last August, for example, salt farmers, who make up the Pamekasan Salt Commission, urged the government to stop salt imports into the country, as they are harming farmers and salt prices at home.
"The current price of salt is very low and imports have affected the price of domestically produced salt," the Secretary General of the Pamekasan Salt Commission, Yoyok R Effendi, said in a rally in front of the Ministry of Trade.
Effendi said farmers had called on the government to permanently end salt imports and to set up a salt task force to supervise its distribution in different sections of the food industry that uses imported salt.
"Multifarious industrial food salt is confusing. It is leaked to the consumer market. The same thing also happens with industrial salt," he said.
Based on data at the Ministry of Trade, salt imports for food industries in 2013 stood at 277,475 tons. This volume increased to 473,133 tons in 2014.
Such an increase also happened due to the importation of salt for industrial use. Industrial salt imports in 2013 were recorded at 1.74 million tons, but in 2014 they increased to 1.77 million tons.
However, the import quota for the two types of salt was reduced in 2015. The importation of salt for food industries has been reduced to 379,000 tons, while that for the salt industries is set at only 1.5 million tons.
Previously, the Indonesian Traditional Fishermen Association (KNTI) requested Coordinating Minister for Maritime Affairs, Rizal Ramli, to investigate the alleged presence of a salt cartel in the country.
"This is an important issue that has to be solved in an effort to carry out the government's initiative to ensure food sovereignty," KNTI General Chairman Muhammad Riza Damanik stated on last August.
Marine Affairs and Fisheries Minister Susi Pudjiastuti has also organized a meeting with salt importers to help improve sales of domestically produced salt.
However, according to Minister Pudjiastuti, salt importers were not positive in discussions during the meeting. "We intended to discuss the challenges faced in making the country a self-reliant producer, but the salt importers showed no goodwill," Minister Pudjiastuti said.
She admitted that the reason behind the importers' response was that the quality of salt produced domestically by farmers is not as high as required. However, businesses should control their imports to prevent an influx of imported salt during the country's salt harvest season.***3***a014/INE)EDITED BY INE(T.A014/A/BESSR/A. Abdussalam) 11-05-2016 21:23:0 |
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