REPUBLIKA.CO.ID, JAKARTA -- The Indonesian government is opening opportunities for raw sugar import from Australia in the ASEAN-Australia-New Zealand Free Trade Area framework, along with the agreement of 5 percent of import duty.
Minister of Trade Enggartiasto Lukita stated that even though the government is opening up the opportunity for raw sugar import, it does not mean that the volume of raw material imports will be increased.
"The number stays the same, there will be no changes in that, but the sources can increase, which can result in fall in prices. We do not depend on certain sources, and there is no monopoly from certain countries," Lukita stated after attending the 2017 National Coordination Meeting of the Indonesian Chambers of Commerce and Industry in Jakarta on Tuesday.
He expressed hoped regarding the cooperation with Australia to provide an alternative for the supply of raw sugar from industry makers. The close geographical proximity between Indonesia and Australia is hoped to be able to increase the competitiveness of Indonesia's industry.
Besides the decrease in raw sugar import duties by the Indonesian government, the Australian government is also decreasing its import duties for pesticides and herbicides. It is also hoped that industry makers, especially those who are in the field, can take advantage of the Australian market.
The minister also explained that every year, Australia is recorded to import herbicide and pesticide commodities worth approximately 400 million dollars.
Meanwhile, Indonesia's export to the country ranges from $50 to 70 million.
"It is hoped for the export would increase, regardless of the amount, but it will still have a positive impact," he asserted.