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Businesses warn salt import ban will disrupt output, prompt relocation
A ban on imports of industrial salt would hamper domestic production, while a prolonged disruption may prompt businesses to relocate their operations abroad.
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In demand: A farmer and his son harvest salt in the Talise area, Palu, Central Sulawesi, on March 17, 2024.
(Antara/Basri Marzuki)
L
ocal manufacturers relying on salt inputs have warned the government that a ban on imports of the commodity would hamper domestic production, while a prolonged disruption may prompt businesses to relocate their operations abroad.
Indonesian Salt Users Industry Association (AIPGI) chairman Cucu Sutara said the group supported the government’s vision for self-sufficiency, but it reiterated it had to be done realistically.
“So long as the government can ensure enough salt supply, [import restrictions] won’t be a problem. But the fact is, local salt production cannot meet the domestic industry’s needs,” Cucu was quoted as saying by Kontan on Tuesday.
The government estimated local industry would need around 4.9 million tonnes of salt in 2024 and 2025.
Meanwhile, domestic salt production is projected to reach 2.25 million tonnes, which is only enough to meet around 63 percent of total local demand.
An import ban on salt for consumer use has been in effect since the turn of the year and the government has also prohibited food processing and pharmaceutical industries from procuring the commodity from overseas.
Industrial salt imports would still be allowed for the next two years but at a reduced quota. The government in December decided to slash the salt import quota for the chlor-alkali industry to 1.7 million tonnes in 2025, or 68 percent of the projected industry need of 2.5 million tonnes.
