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Govt to tighten regulation on agricultural products export

JAKARTA: Ministry of Trade hints to establish particular adjustment on export regulation for several agricultural and mining commodities.Indonesia as matter of fact has held several export adjustment regulation, including the imposition of export duty

JAKARTA: Ministry of Trade hints to establish particular adjustment on export regulation for several agricultural and mining commodities.Indonesia as matter of fact has held several export adjustment regulation, including the imposition of export duty on crude palm oil and cocoa.Government has also displayed its intervention on rattan and coffee export as it has issued listed export regulation. Government currently also reviews export duty for coconut and cashew.All commodities in the form of raw materials must be first processed as our mission is to raise the export of qualified products, aiming to meet trading criteria, said Director General of Foreign Trading at Ministry of Trade, Deddy Saleh to Bisnis yesterday.The trading criteria must be environmentally friendly and fulfilling traceability aspect. Yet, Deddy ensures that any policy will not neglect any competitiveness aspects, including price.The related authority has firmly regulated mining products as it has managed tin export where tin products must contain of 99.85% tin.However, Trade Minister Mari Elka Pangestu said that discussion on export regulation is yet to include agricultural commodities. We have only discussed raw mining commodities as it will be applied by 2014, referring to Mineral and Coal Law, he said.Policies advantagesDeddy added that the imposition of export duty on several agricultural commodities have been proven effective as most raw materials price of agricultural products tightly compete with foreign commodities.Many similar foreign products ruin price stability by setting higher price than domestic price.Head of Indonesias Cocoa Industry Association, Pieter Jasman affirms the positive impact of such regulation as it is contributed to domestic industry growth.One year after the implementation of such regulation, several industries once terminating their production activities in fact begin to recover. Several industry, surprisingly have expanded.Yet, Executive Director of Indonesia Rubber Entrepreneur Association (Gapkindo), Suharto Honggokusumo said that adjustment on export regulation is relatively not applicable for all agricultural commodities. (t02/msw)

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