Abdul Khalik, The Jakarta Post, Jakarta
Indonesia's growing consumption of noodles and bread -- the second and third most consumed food after rice here -- requires a variety of wheat flour suppliers to provide people with cheaper but higher quality food.
Representatives from 15 Indonesian food companies traveled to Turkey to look into the possibility of importing wheat flour and grain milling machinery from Turkey, the world's largest exporter of wheat flour.
Turkish Ambassador to Indonesia Aydin Evirgen said the business trip was part of the country's efforts to promote Turkish products and exports, especially wheat flour and grain milling machinery, to Indonesia.
""Wheat flour and grain milling machinery are among Turkey's main exports that have a comparative advantage. We certainly have high quality wheat and machinery as over 60 countries have accepted our products,"" he told reporters in a press gathering at the Turkish Embassy in Jakarta.
Evirgen said that during their trip, Indonesian businesspeople signed a memorandum of understanding with their Turkish counterparts for the import of flour and machinery.
The trade volume between Turkey and Indonesia has been increasing in the last five years. Bilateral trade reached US$825 million in 2005, up from only $262 million in 2000.
Turkey was the world's largest exporter of wheat flour in 2005, with an export volume of 2.04 million tons, surpassing exports of 25 European Union countries.
Indonesia, on the contrary, must import wheat flour from other countries to cover its consumption of around 4 million tons of flour because the country cannot plant wheat due to the unsuitability of the climate.
Indonesia need huge amount of flour because more and more Indonesians are consuming instant noodles as an alternative to rice.
To be able to export flour to Indonesia, foreign companies must have an Indonesian National Standard (SNI) certificate from the Industry Ministry.
Recently, two companies from Turkey obtained SNI certificates.
Beside Turkey, only companies from Australia, China, and the United Arab Emirates (UAE) have SNI certificates. Indonesia mainly imports flour from Australia because China and the UAE have problems with dumping allegations.
""There are no dumping allegations for Turkish products from its over 60 trading partners so there is no reason to accuse them of dumping and applying an additional tax on their products,"" said Djoekino, director of Olagafood Sukses Mandiri, who led the Indonesian trade delegation to Turkey.
Djoekino, who is also deputy chairman of the Association of Indonesian Food Producers (ASPIPIN), said that it was about time Indonesia had more suppliers of wheat flour so that people could enjoy good quality food at a competitive price.
""Turkish wheat flour is of a high quality. Besides, it is competitive. So far, there are only three or four players that dominate the industry. With more players it is hoped we can provide people with cheaper products,"" he said.
Because of the lobbying of the government by industry players, it is difficult for new players to enter the flour industry in Indonesia. Despite the fact that Indonesia needs huge amount of flour, there are only four companies -- PT Bogasari Flour Mills, PT Berdikari Sari Utama Flour Mills, PT Panganmas Inti Persada Flour Mills, and PT Sriboga Raturaya Flour Mills -- in the country.
