| By Andi Abdussalam |
Jakarta, June 10 (ANTARA) - Alarmed by the increasing rate at which foreign companies are gaining control over Indonesia's national resources, some quarters have urged the government to take bold and concrete steps to safeguard the country's natural resources by terminating contracts containing unfair terms or nationalizing ventures set up based on agreements deemed unfair to Indonesia. In the face of the many mining contracts now to expire, the government has to take anticipatory steps to renegotiate the contracts or nationalize the ventures concerned to prevent the country's natural resources from falling further into the clutches of foreign companies. Senior economist of the Advisory Group on Economic Industry and Trade (Econit) Hendri Saparini said foreign firms were trying to control the Indonesian economy and redirect national economic policies to serve their own interest. "In order to make it easier for foreigners to take control over Indonesia's natural wealth, they bribe politicians and government officials to produce regulations in favor of their interest," Hendri Saparini told a discussion on "My Country Under the Shackles of Corruptors," last week. Hendri said companies often gave bribes to officials in order to obtain mining licenses. "This is saddening because the licenses they get by way of bribing are later sold to other businesses for a higher price," she said. She said many laws were pro-foreigners and disadvantaged the Indonesian people in the long run. He cited as an example Law No. 30 / 2007 on the mining sector. This law among others had a stipulation which enabled foreign firms to gain control of 95 percent of the mining sector. The senior Econit economist said the clause in the law should be revised because it would harm the interest of the Indonesian people in the long run. In addition to the revision of the law, the government also needs to adopt he principle that it would only sign contracts whose clauses were fair to the nation. Mining licenses should also be evaluated. Therefore, she said, the government should evaluate the implementation of the mining licenses, whose number reached 6,000, to check their designations. After all, in the gas and oil sector for example, many contracts would expire in 2018. In this case, Marwan Batubara of Indonesia Resource Studies (Iress) has reminded the government of the need to take strategic and beneficial steps to the state before the expiry of oil and gas block contracts with foreign companies. "There will be tens of oil and gas contracts which will expire up to 2018. The government should immediately take strategic steps which are beneficial to the state before the oil and gas block contracts end," Marwan said. National oil companies (NOC) should be given the first priority to cultivate the state resources so that they would greatly benefit the people. If Article 33 of the 1945 Constitution is to be observed, Pertamina as a state company whose shares are 100 percent owned by the state, must be given the first priority to cultivate oil and gas blocks whose contracts have expired. Marwan said with the constitutional message, even without request, the government should assign Pertamina to cultivate the oil and gas blocks. "But in practice, Pertamina rarely got the assignment. It even often became the victim such as in the case of Cepu and Semai V blocks," he said. Marwan said the matter was urgent to be done by the government to anticipate the extension of a number of oil block contracts such as the Mahakam oil field and the South Natuna block and others. In line with the calls of various quarters, the government is considering renegotiating investment contracts with foreign companies engaged in oil, gas and coal mining that have not been in conformity with the law on mineral and coal mining. In principle, the government respected the contracts but deemed it necessary to review unfair contracts, Finance Minister Agus Martowardoyo said at the State Palace last week. "In 2011 there are many contracts of work and so forth that we need to review to see whether or not they represent win-win solution and whether or not they are unfair. That's what we want to review and study," he said. But he stopped short of naming the foreign mining companies. "All of them. We cannot mention them. But they are mostly engaged in natural resources management," he said. The director general of mineral and coal mining of the ministry of energy and mineral resources, Thamrin Sihite, said meanwhile contracts made with investors would be honored. "Like in a marriage if divorce is to be done it must be based on an agreement. So it will not be done just like that," he said. He said a number of mining contracts have been agreed to be adjusted with the law. He however declined to name the contracts. "As soon as deal is made we immediately sign it," he said. However, some called for nationalization of companies in the mining business. "It would be more appropriate for the government to nationalize the mining business licenses," chairman of the Indonesian Green Institute Chalid Muhammad said in a discussion on renegotiation of natural resources contracts early this week. Chalid said that now was no longer an appropriate time to discuss renegotiation of the contracts because they were no longer contextual. If the contracts were renegotiated they would be just the same, as they would eventually be diverted from foreign firms to national firms where foreigners also owned shares. He said that some of the shares of national firms turned out to be also controlled by foreign holders. Therefore, Chalid who is a former director of the Indonesian Environmental Forum (Walhi), said that the fund obtained from contract renegotiation would neither be effective as it would not flow to the people. He reminded that a number of state leaders had done nationalization at present such as Evo Morales (Bolivia), Lula da Silva (Brazil), and Hugo Chavez (Venezuela). "They are not fined with penalties and are not taken to the international arbitration," he said.***5*** |
Jumat, 10 Juni 2011
PEOPLE WANT FOREIGN FIRMS TO REDUCE DOMINATION OF MINING RESOURCES
Rabu, 08 Juni 2011
WEF TO OFFER CHANCES TO LOCAL BUSINESSES
| By Andi Abdussala |
Jakarta, June 8 (ANTARA) - Indonesian businessmen are expected to take advantage of the two-day World Economic Forum-East Asia (WEF-EA) which will begin in Jakarta on Sunday. About 600 global economic policy makers will gather for two days to address and discuss global economic conditions, investment, trade, energy, food security and other global economic issues. This forum offers a great chance for Indonesian businesses where global economic players are believed to be willing to expand business networks and to seek business partners in Indonesia, a country known for its richness in natural resources and has great business potentials. "We want to take advantage of the event which is very prestigious, which will be attended by approximately 600 participants," Chief Economic Minister Hatta Raja said. He claimed that the holding of the world forum in Indonesia indicated the country had become the target of global business makers to find business partners. "They see Indonesia as a good country and place to find business partners. During the forum, the will also express their views about global conditions, investment, trade, food security, and others," he said. Therefore, local business players hope they can expand their networks and share experience with global counterparts through the annual World Economic Forum. "Leaders of global industries will gather here, as a local company intending to expand globally, we hope to take advantage of the forum to build wider networks," Shinta Widjaja, managing director of Sintesa Group, said. Shinta, who leads a family firm which is doing business in many sectors, including energy, industry and hotels, said she also hoped to get new knowledge about sustainable industries from global business players. "We will also share our experience in realizing sustainable industrial activities. Although we are still active in a local scope we actually have done something," she said. President Director of PT Bakrie Telecom Anidya Novyan Bakrie said meanwhile that the forum offered a chance for business makers in Indonesia to establish business and investment cooperation with global business players. "This is a rare moment. So, we should be able to take advantage of it. This will help us attract business cooperation and investment from other countries, because we still need funds for certain business sectors such as infrastructure," she said. Freddy Tulung, a senior official of the Communications and Informatics Ministry, said the meeting will give Indonesia very positive exposure. "The presence of global and Asia-Pacific decision makers will create opportunities for trade and investment as well as tourism activities," he said. Director General for International Trade Cooperation of the Trade Ministry Gusmardi Bustami explained that the government and businesses could utilize Indonesia's position as host of the forum to expand business network and promote the country's potentials. "We hope this would attract investment, tourists and boost economic growth," he said. He said that the forum would discuss various problems including the world economic situation at present and its projection in the future, food security, energy and multilateral trade cooperation development. According to Chief Economic Minister Hatta Rajasa, East Asia is playing its role at the global level today. Business leaders are interested in the topics to be taken to the forum and this would be beneficial to business leaders in Indonesia. Held for the first time in Indonesia, where executives of the IMF, ADB, UNCTAD, UNWTO and top leaders from a number of countries such Singapore and Malaysia will also attend, the 20th meeting of WEF-EA will discuss efforts to give response to the new globalization. "The main theme of the forum is to give a response to new globalization. There are also sub-themes which are among others aimed to discuss how to manage the global turmoil and climate change, geopolitical risks, the problem of unemployment, food security and energy, and others," Hatta Rajasa said. Indonesia will bring up the issues of food security and energy affairs. "There will be a session for the subject matter of foods and energy, so that the Agriculture Minister and the Energy and Mineral Resources Minister (ESDM) will speak in the forum," Hatta said. The food security and the energy matters is a big challenge the countries in the world should face, including in East Asia with their rapid growth. "We will make use of this meeting to seek solution against this matter," Hatta said. Indonesia's delegation will consist of officials from the coordinating ministry for economic affairs, the foreign affairs ministry, the finance ministry and the Investment Coordinating Board (BKPM). The country's delegates will also include representatives of Pertamina, Bank Mandiri, BNI 46, Group Lippo, Group Sintesa, Bumi Resources, Indika Energy, PT EMTEK, PT Smart, PT. Indorama, Quvat, PT Astra International Tbk, Agung Podomoro Group, and PT Gajah Tunggal. As many as 16 Indonesian high ranking government officials in addition to President Susilo Bambang Yudhoyono, Vice President Boediono, Minister Hatta Radjasa, Finance Minister Agus Martowardojo, Foreign Minister Marty Natalegawa, Trade Minister Mari Elka Pangestu and chief of the National Investment Coordinating Board Gita Wirjawan will attend the WEF-EA meeting.***5*** |
Selasa, 07 Juni 2011
GOVT HARD PUT TO MAINTAIN SUBSIDIZED FUEL QUOTA
| By Andi Abdussalam |
Jakarta, June 7 (ANTARA) - The government is struggling to maintain its subsidized fuel oil quota at 38.6 million kiloliters this year amid signs of increasing consumption that may reach 40 million kiloliters, an amount that would force the government to increase its subsidy budget by Rp2.38 trillion on top of the 2011 budget ceiling of Rp95.9 trillion. Finance Minister Agus Martowadojo said the subsidized fuel oil quota amounting to 38.6 million kiloliters must be maintained in order not to burden the 2011 state budget. "Last year, the use of subsidized fuel oil exceeded the target to reach up to 42 million kiloliters, but now we ask that the 38.6 million kiloliters should be maintained," the minister said on Monday. Based on its estimate however, subsidized fuel oil consumption this year will reach 40 million kiloliters, or even more than that. According to Oil and Gas Director General Evita Legowo, the 40 million kiloliter estimate is above the subsidized fuel oil quota set in this year's State Budget of 38.6 million kiloliters, or there would be additional subsidized fuels amounting to 1.4 million kiloliters. "Up to the end of the year it may amount to 40 million kiloliters," she said. This prediction is still below last year's realized consumption at 42 million kiloliters. Additional consumption of subsidized fuel oil by 1.4 million kiloliters would raise the subsidy by Rp2,38 trillion. Acting Head of the Finance Ministry's Fiscal Policy Affairs, Bambang Brodonegoro said each addition by one million kiloliters to the subsidized fuel oil quota will increase the subsidy in the state budget by Rp1,7 trillion. "Each one million kiloliter increase has the potential to raise subsidy by Rp1.7 trillion. This is not a deficit but additional subsidy," Bambang Brodonegoro said. He ascertained the subsidy would increase if subsidized fuel oil quota in the state budget was raised from the previously set at 38.6 million kiloliters. "The subsidy will surely increase if the subsidized fuel oil quota is raised," he said. Yet, there are signs that consumption may reach 40 million kiloliters. "Fuel subsidy in the year ended April 30, 2011 reached Rp29.2 trillion or 30.4 percent of the ceiling of (Rp95.9 trillion) in the 2011 state budget," Bambang Brodjonegoro said. This figure is far higher if compared with that in the same period a year earlier. In the first four months of 2010 fuel subsidy only reached Rp10.9 trillion or 12.2 percent of the ceiling of Rp88.9 trillion in the 2010 state budget. Director General Evita Legowo said that if the government did not make any special efforts, the subsidized fuel oil consumption may reach as high as 42 million kiloliters. This condition raised Chief Economic Minister Hatta Rajasa's concern. He said subsidized fuel consumption which exceeded the quota in the 2011 state budget would raise a deficit and put the budget under pressure. "Don't let it exceed the quota. We don't want our fiscal to collapse," he said following a coordination meeting at the Coordinating Ministry for Economic Affairs last month. Although it was not easy to maintain the subsidized fuel quota of 38.6 million kiloliters for 2011, the government would do its utmost to prevent consumption from exceeding the quota, he said. "Consumption in the first quarter of 2011 reached 30 percent. If we don't control the consumption it will exceed the quota. So we must discipline ourselves to safeguard the quota," Hatta said. Finance Minister Agus Martowadojo said that in order to maintain the target, regulations on subsidized fuel oil consumption cuts must be implemented as soon as possible and should not be delayed again. He said that the government should have implemented its policy on subsidized fuel oil consumption cuts in October last year when it was predicted that the use of subsidized fuel oils would increase sharply. "We cannot yet implement the regulation last year, no can early this year because of the reason that we were still lack infrastructures. After all, not all gasoline stations in Jakarta were equipped with pertamx oil tanks. So, the implementation of the regulation was pushed back until last April. Yet it has now been delayed again," the minister said. He said that his ministry would focus on how to maintain the subsidy so that it would not exceed the already set quota. In this case, the minister supported the plan to launch a trial-test for the government's policy on subsidized fuel oil consumption cuts as of July 1, 2011. "We welcome the plan to begin the limitation of subsidized fuel consumptions aimed at making effective and meet the targeted quota," the minister said. The minister also expected that another effective solution would be found as the consumption volumes of fuel oil had up to now increased seven percent compared with that in the same period last year.***5*** |
Senin, 06 Juni 2011
INDONESIA NEEDS TO INCREASE DAIRY PRODUCTION
| BY Andi Abdussalam |
Jakarta, June 6 (ANTARA) - Indonesia which has a population of 237.6 million is a big market for dairy products but so far its own milk production is still low so that it has to import most of its need for the food stuffs. Indonesia has to import about 70 percent of its milk need while its fresh milk production is still low at about 1.4 million liters per day. Its per capita consumption is also low at about 11 liters a year. Agriculture Minister Suswono said that the average milk consumption rate of the Indonesian people was still very low compared with those of other countries, namely about 11 liters per capita per year. "The Indonesian people only consume about 11 liters of milk per capita per year. It accounts for only one-third of Malaysia's average milk consumption which is about 36 liters per capita per annum, let alone if it is compared with those of the Unite States and the Netherlands," the minister said after attending the National Milk Day 2011 in Semarang on Saturday. The present rate of Indonesian people's per capita milk consumption has actually increased compared with that about four years ago. This was thanks to the people's awareness of the health benefits of milk. In 2007, Indonesian per capita milk consumption was about 7.7 kg a year and this increased by about 6 percent in 2008. There are three types of consumer products that continue to dominate the market, namely powdered milk, sweetened condensed milk, and liquid-ready to drink milk. Consumption of liquid milk, powdered milk, and sweet condensed milk were growing by 20 percent, 10-12 percent, and 20 percent respectively in 2007. By 2009, the per capita milk consumption of the people relatively remained low as compared to those other countries, namely about 10 liters per capita a year. This is far below that of Malaysia which reached 30 liters per capita per annum. Last year, the Indonesian per capita milk consumption only rose slightly to 11 kg a year while that of Malaysia has risen to 36 liters. Therefore, the government continues to make efforts to increase the people's average milk consumption rate, among others by raising the people's awareness of the benefit of consuming milk through celebrating the Nusantara Milk Day. The Nusantara Milk Day was on Saturday observed in Semarang, Central Java, where the function carried a theme: "A Glass of Fresh Milk Per Day," he said. Through the observance of the Indonesian milk day, the people are expected to raise their awareness of the benefit and the need to consume milk. But for this, efforts must be supported by increased local milk production, as so far the country still imports most of its need. Minister Suswono said that about 70 percent of the country's need for milk was still imported while the domestic national milk production could only meet 30 percent of the people's need. The minister said that due to its condition, the country's milk production was not yet able to meet the people's need for milk because the milk production business at home was still done in small scale. "We also need to improve the country's milk production management, such as the need to improve the hygiene aspect and its originality," the minister said. Since in the past several years, Indonesian milk production has not yet increased significantly. Indonesian fresh milk production remained stagnant in 2007 at 1.2 million liters per day and could only meet 25 percent of overall Indonesian milk demand. The gap was fulfilled from imports. Despite the soaring price of non fat dry milk as well as whole milk powder in the international market, imports of non fat dry milk are forecast to continue growing as demand remained firm. According to a ministry of agriculture official, Indonesia still had to import 76.5 percent of its milk need in 2009 as domestic production could only meet 23.45 per cent of the need. Local milch-cow farmers produced some 1.3 million to 1.4 million liters of milk per day, of which 97 percent were supplied to domestic milk processing industries. Economic and cooperative observer Sri Edi Swasono said the government should provide a subsidy for about 120,000 local milk producers in Java, and give them the needed facilities so that domestic milk producers and industries would develop well. Thousands of milk producers are grouped in about 95 centers of cooperatives units under the Indonesian Milk Cooperatives Movement. Based on data quoted by the online media the CattleSite.com, Indonesian milk production is sourced from around 320,000 cattle largely located in three milk-producing areas in Java. West Java's dairy cooperatives used to produce the highest amount of milk, but the position was taken over by East Java's dairy cooperatives in 2004 when the price of beef skyrocketed so that farmers received more from culling their dairy cattle for beef versus looking after the cattle for milk. By 2007, West Java's dairy cooperative produces approximately 400,000 liters of milk per day while East Java produces 600,000 liters of milk per day. The balance is produced by Central Java and other parts of Indonesia. In order to boost local milk production, Central Java Governor Bibit Waluyo suggested on Saturday that milk imports from other countries should be reduced but imports of milch cows must be increased, young cows. "About 70 percent of the national need for milk is imported while another 30 percent are met by locally produced milk," the governor said. He said that the big volumes of imported milk had caused local milch cow breeders to face difficulties in developing their business because imported milk put on the market usually had better quality and cheaper price.***5*** |
Sabtu, 04 Juni 2011
AUSTRALIA SUSPENDS LIVESTOCK EXPORTS TO INDONESIA
| By Andi Adussalam |
Jakarta, June 4 (ANTARA) - Australia which last year shipped $300 million worth of livestock to Indonesia, may have decided to suspend the exports in an effort to bolster the volume of its frozen meat exports to its Southeast Asian neighbor. "It would be more profitable for Australia to export meat rather than slaughter cows to Indonesia," Agriculture analyst Bustanul Arifin said on Friday in response to reports that Australia has threatened to stop its slaughter cattle exports to Indonesia. He said that with meat exports Australia would be able to gain more profit than the one it could reap if it sold slaughter cows to Indonesia. According to ABC news on Tuesday, Indonesia is Australia's key market for live cattle exports, taking 60 per cent of all cattle, and in 2010, the trade was worth more than $300 million. Since the trade began 20 years ago, more than 6.5 million cattle have been shipped to Indonesia for slaughter. The Australian livestock export industry and the Australian Government have invested more than $4 million into improving animal welfare in Indonesia over the past 10 years. However, reports have it this week that Australia had threatened to stop shipping cows to abattoirs in Indonesia after a document revealed that abattoirs had committed cruelty against the animals sent there for slaughter. The footage aired on ABC1's Four Corners early this week showed the animals were kicked, thrashed and beaten, their throats were hacked at, eyes gouged and tails were broken. Australia's export agency LiveCorp has taken the decision to stop exporting cattle to Indonesia after it was given footage of animal cruelty by animal rights campaigners. LiveCorp CEO Cameron Hall said cruelty to Australian animals was simply unacceptable and the industry won't tolerate it. He described the footage as graphic and distressing, and frustrating for the industry. The move came ahead of an investigative feature, which included the film from Indonesia, on the ABC's Four Corners on Monday night. Nswpolicecrime.com online media quoted the analysis on the footage by Royal Society for the Prevention of Cruelty to Animals (RSPCA) chief scientist Bidda Jones that some animals showed signs of consciousness when they were dismembered. In March this year, animal welfare campaigners 'Animals Australia' filmed in 11 randomly chosen abattoirs in Indonesia and provided the footage to Four Corners. More than a month later, a Four Corners team went to Indonesia and filmed in abattoirs where cattle suffered prolonged and painful deaths. However, Bustanul Arifin who is also a professor at the Lampung State University said the Australian decision to stop live cattle exports because of cruelty reason to the animals had trade motivation to boost Australia's meat trade to Indonesia. Besides having higher added value if exported in the form of meat, the Indonesian government could also face difficulties to control the edibility of the meat if the live stocks are slaughtered there. "After all, Indonesia is now launching a self-sufficiency program to increase its production at home in 2014," he said. In 2011, the agriculture ministry has allocation for the importation of 50,000 tons of meat, far below that in 2010 which was 120,000 tons. Indonesia imports meat from Australia, New Zealand, the United States and Canada. In the mealtime, Agriculture Minister Suswono said Indonesia was planning to reduced its cattle imports to only 10 percent of its need by 2014. "Indonesia has set itself a target to import only 10 percent in 2014. Based on the international standard, Indonesia would already be self-sufficient if it is able to reduce its imports to only 10 percent," he said. Regardless of this, he said, Australia, which exported some 600,000 head of cows annually to Indonesia, still needed the Indonesian market for its cattle and to this effect both nations ahead must nurture better cooperation. "We believed that Australia still needs the Indonesian market because Indonesia so far has been a destination country for cattle exports," he said. Indonesia imports meat from Australia, New Zealand, the United States and Canada. The minister said it was Australia's rights to judge whether or not there was cruelty to slaughter cows at Indonesian abattoirs and whether or not it would stop its exports to the country. "We are not concerned with the threat of Australia to stop its cow exports to Indonesia because we can import the cattle from other countries. After all, we hope that the result of the census would guarantee our steps in increasing the local cattle population," the minister said. The Indonesian government is launching an inventory on the population of its cows and buffaloes to know the volumes of its need for imported meat in the future. |
Kamis, 02 Juni 2011
SAUDI ARABIA TO PROTECT RI MIGRANT WORKERS
| By Andi Abdussalam |
Jakarta, June 2 (ANTARA) - For as long as 40 years, Indonesian migrant workers in Saudi Arabia had been running the risk of experiencing all sorts of unexpected difficulties ranging from maltreatment by employers to brushes with the law because of the absence of a legal umbrella regulating their presence in the Middle Eastern country. But this situation is soon to change for the better with the conclusion of an agreement between the Indonesian and Saudi governments to improve their services for placement and protection of Indonesian workers in that country. The agreement was reached at a Senior Officials' Meeting (SOM) between Saudi Arabia and Indonesia held in Jedda over the weekend. "Thank God, we have signed a statement of intent toward the signing of an MoU with Indonesia," Saudi Arabian Manpower Minister Adel Mohammad Fakeih said after attending the meeting. Fakeih said the two countries needed to sign the MoU as a legal umbrella for the placement and protection of about 1.5 million Indonesian workers in Saudi Arabia. The statement of intent is expected to be followed by the signing of an MoU by both governments within the coming six months. The statement of intent was signed between Moh Jumhur Hidayat, head of the National Agency for Placement and Protection of Indonesian Migrant Workers Overseas (BNP2TKI), in his capacity the Indonesian chief delegate to the SOM, and Adel Mohammad Fakeih who head the Saudi delegation. "The agreement would lead to maximal protection of the Indonesian migrant workers in Saudi Arabia," Jumhur said. Through the Statement of Intent, both sides agreed the establishment of a joint working committee to formulate a memorandum of understanding that would be signed between Saudi Arabia and Indonesia. He said that the placement of Indonesian workers in Saudi Arabia now would enter a new phase of good protection and respectable services as the supervision of both countries would be involved under the MoU as a legal umbrella. According to Jumhur, the letter of intent contains a number of matters relating to the arrangement, placement and protection of Indonesian workers so that they would be able to work comfortably and securely with protection. After all, Jumhur said, Adel Muhammad Fakieh has assured that the MoU was needed as a legal umbrella in settling various TKI problems, while at the same time it served as a protection scheme for about 1.5 million TKIs working in Saudi Arabia. Based on the statement of intent, the placement and protection of TKIs included efforts to respect workers' dignity with the provision of an insurance program, health, legal counseling and an interpreter team when they are facing various problems and disputes. "Ahead, Indonesia wants TKIs to work in Saudi Arabia securely and comfortably in accordance with their desires, " Jumhur said. He said that over the past 40 years of Indonesian workers' placement in Saudi Arabia, both countries had never yet made any joint statement of intent or commitment to produce an MoU because so far Saudi Arabia had never made any agreement with any worker exporting countries. "So this is the first agreement reached during the SOM of both nations in Jedda aimed at the eventual signing of an MoU between the two," Jumhur said. He said that the Indonesian migrant workers in Saudi Arabia had brought many advantages to Indonesia and Saudi Arabia. But so far they had faced many problems. Therefore, the SOM is a historic meeting because it constituted the first of its kind ever held over the past 40 years. Before the SOM was held Manpower Minister Muhaimin Iskandar expressed hope that the SOM would produce maximal results. The minister expected that the meeting would result in an agreement to improve placement services, protection and employment contracts of TKIs and other things such as the availability of complete information on the employers, better access to communication, insurance protection and accommodation. Of the 1.5 million TKIs in Saudi Arabia, about 650 thousands are estimated to have been staying in accredited areas of the Indonesian Consul General in Jedda, and some 800 thousands others are in the Indonesian Embassy's accredited areas in Riyadh. Indonesia and Saudi Arabia have also faced problems with the big number of Indonesian migrant workers overstaying their visas. Initially, overstayers were those of problematic workers who fled their employers' homes to various boarding facilities partly because they were not paid, treated inhumanely, had heavy workloads, worked not based on their contracts, had sexual harassment, had been abused, were not competent in work and faced cultural shock. But some other overstayers have also been visitors who come to Saudi Arabia to perform a minor haj pilgrimage or umroh. An estimate has put the number of Indonesian oversayers in Saudi Arabia at 50,000. The government had planned to help some 25,000 return home this year for lack of funds while the remaining 25,000 will still have to stay there until they see what the government will do with them. Until last March, 2,073 of the planned 25,000 have been facilitated to return home, and early in May, the government returned again 2,349 overstayers. The MV Labobar, a ship carrying the 2,349 migrant workers from Jidda, Saudi Arabia, arrived at Jakarta's Tanjung Priok seaport in the first week of May 2011.***4*** |
Selasa, 31 Mei 2011
RI'S PROCESSED COCOA EXPORTS INCREASING
| By Andi Abdussalam |
Jakarta, May 31 (ANTARA) - Indonesia's overall cocoa exports are predicted to drop by about 12.5 percent this year, but its processed cocoa shipment to overseas markets has increased, which this year is expected to reach 40 percent of the total cocoa exports. So far, most of Indonesia's cocoa products, or about 80 percent, are exported in the form of beans. However, the government has since April last year slapped a 15 percent tax on cocoa bean exports to encourage local factories to produce and increase exports of processed cocoa products. Fermented cocoa beans producers said that Indonesia could increase the added value of its cocoa products by about Rp2000 (about US$0.23) per kg if exported in the form processed goods. "It can be imagined if Indonesia's annual output reaches up to 500,000 tons. This means that there are about five hundred million kg of cocoa beans which lose Rp2000 per kg, or a total of about Rp1 trillion. This is farmers' money," Syamsuddin Said of the Indonesian Fermented Cocoa Beans Association, once said. It is expected that this year cocoa exports from Indonesia, the world's third largest cocoa producer after the Ivory Coast and Ghana, will be between 280,000 ton and 300,000 tons, down from 320,000 tons in 2010, Zulhefi Sikumbang, chairman of an association known as Askindo, was quoted as saying recently by Reuters. Askindo has predicted that the Indonesian production will be flat at about 600,000 tons this year, as increased output from new planting offsets the impact of heavy rains. Although its overall exports are declining over rise in domestic consumption, yet its processed ones on the rice. This year, Indonesia's processed cocoa exports are expected to reach 40 percent of its overall types of cocoa exports. "Usually, Indonesia's processed cocoa exports only accounted for 20 percent of its overall cocoa exports. This year, its processed cocoa exports could reach 280,000 tons, or about 40 percent of its overall cocoa product exports," Piter Jasman, chairman of the Indonesian Cocoa Industry Association (AIKI) said on Tuesday. He said that processed cocoa exports had increased on the imposition of tax on cocoa bean exports so that raw material supply to local cocoa factories was ensured. "With guaranteed supply, we can produce more. After all, the government does withdraw any tax on processed cocoa exports," he said. The values of Indonesia's cocoa exports in 2009 and 2010 were respectively recorded at US$1.41 billion and US$1.64 billion. He said that with guaranteed cocoa beans supply at home cocoa factories were optimistic that they were able to increase production and raise processed cocoa contribution to the country's overall cocoa exports by 50 percent. This is in line with the government's aim in imposing a 15 percent tax on cocoa bean exports, namely to bolster local processing industry and increase the added value of farmers cacao production. About 93 percent of Indonesia's 1.5 million hectares of cocoa plantations are owned by smallholders. "We are able to increase the contribution of processed cocoa products to the overall exports thanks to the export tax. This has guaranteed cocoa bean supply for local industries so they could increase their production. After all, processed cocoa exports are subjected to tax ," Piter Jasman said. Data at the trade ministry showed an upward trend in the contribution of processed cocoa products to the overall national cocoa exports. Indonesia's cocoa paste and butter contribution to the overall cocoa exports increased from 17.71 percent in 2009 to 18.43 percent in 2010. In this case, the values of Indonesia's overall cocoa exports in 2009 and 2010 were respectively recorded at US$1.41 billion and US$1.64 billion. The contribution of cocoa paste and cocoa butter products to the overall cocoa exports in the January-February 2011 period reached 21.21 percent of the overall values of US$219.05 million. In the same period in 2009, the contribution of cocoa paste and butter to the overall exports were only 15.56 percent of the overall export values of US$253.60 million. The contribution of cocoa powder and cocoa bar exports also increased, which in 2009 was only recorded at 5.30 percent but in 2010 it rose to 9.08 percent. In the meantime, the contribution of Indonesia's cocoa beans and cocoa nut shell exports since 2010 has been showing a downward trend. In 2010, the values of cocoa beans and cocoa nut shell exports were valued at US$1.19 billion, or 72.49 percent of the total export values which reached US$1.64 billion. The contribution of cocoa beans and cocoa nut shell exports in that period was lower than their previous contribution which accounted for 76.98 percent of the total cocoa exports valued at US$1.41 billion in 2009. The share of the cocoa beans and cocoa nut shell exports in the overall cocoa exports in the January - February 2011 period was recorded at 66.88 percent. This figure was smaller if compared with the contribution of these two types of cocoa exports in the same period in 2009 which was 76.75 percent. ***5*** |