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Govt due to introduce trade system

The government plans within weeks to introduce a new trade system for horticultural products, which will include an import arrangement, in a move to increase protective measures within the domestic market, an official says

Linda Yulisman (The Jakarta Post)
Jakarta
Mon, November 28, 2011

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Govt due to introduce trade system

T

he government plans within weeks to introduce a new trade system for horticultural products, which will include an import arrangement, in a move to increase protective measures within the domestic market, an official says.

Deputy Trade Minister Bayu Krishnamurti said on Friday the new system would ensure the quality and security of imported products for local consumers as well as guarantee the sustainability of local agricultural businesses.

A trade system to protect local products is commonly applied to a country’s essential food commodities, which in Indonesia’s case are rice, salt and sugar.

“We are trying to safeguard the local market from risky products and, for that reason, we will conduct a risk assessment regarding such products with this new system,” Bayu said on Friday.

He referred to the 2010 Horticulture Law, which stipulates for the protection of national interests regarding imports of both fresh and processed horticultural products, as the basis of the new trade system.

The use of risk assessments, according to Bayu, may also be applied to other products besides horticultural products, in anticipation of escalating global turmoil, when the country expects a higher number of imported products from other countries.

Analysts have warned that Indonesia, the world’s fourth most-populous country, with more than 240 million people, 70 million of whom comprise a growing middle class, is a lucrative target market for countries experiencing export slowdowns and seeking alternative export destinations.

Bayu further explained that by conducting risk analyses, the government could check the safety of the imported products to avert the spread of pests and diseases, which could harm local plants and threaten production, and protect the interests of local farmers from unfair practices that may be applied by exporting countries, such as subsidies and dumping.

The system is slated to be introduced on potatoes, he added.

As widely reported, potato imports recently came under the spotlight following a fall in the price of domestic potatoes in September, due to the high number of imported potatoes from China and Bangladesh, which were sold at prices undercutting those of local producers.

According to Bayu, under the new system, related authorities will verify imported horticultural products according to their specifications, farming practices and the harvest period, to ensure their security and lifespan. To do this, the Trade Ministry would cooperate with customs offices, quarantine centers and port authorities, he said.

To support this effort, he continued, the government would arrange for imported products to enter the country via ports with maximum security facilities.

“We are coordinating with related ministries to find ways to ensure the security process can be conducted away from our consumption centers. In the future, we want to develop quarantine centers in outerlying regions of the country,” he said, referring to Aceh, Riau Islands and North Sulawesi provinces as potential sites for the new quarantine centers.

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