Indonesia requested that the export of processed cocoa products to Europe are not subject to import duties which amount to around 7% -9%.
Cocoa exports: RI Ask Europe Remove import duty of 7% -9% action in European countries is considered discrimination because of processed cocoa products from Ghana are not subject to import duties.
Trade Minister Gita Wirjawan said it immediately asked for an explanation of the privileges obtained Ghana.
"It [the import duty of 7% -9% of the cocoa Indonesia] we picked up later to Europe, why Ghana is given preferential treatment like that. There is a mechanism, whether through the WTO or bilateral, "he explained last week.
As we know, Indonesia is the third largest producer of cocoa after the Ivory Coast and Ghana.
The Government has imposed tariffs out of cocoa beans in order to revive the domestic downstream industries. However, if exports to Europe remained subject to import duties, hilirisasi conducted within the country potentially would not be maximal.
"The imposition of duty out [on commodities] that the spirit of the Ministry of Industry to promote downstream industries. Going forward, the policy had to be downstream. Not only cocoa, "he explained.
He said that applied to the tax on cocoa beans to make quite a lot of foreign investment into Indonesia to build cocoa processing plant.
Foreign companies started to invest in the emerging industry of processed cocoa Indonesia, after the government imposes a tax on up to 25% of the cocoa bean since 2010.
Last year, Guan Chong Bhd from Malaysia set up its own PT Asia Cacao Indonesia in Batam.
Meanwhile, manufacturers of chocolate and cocoa products from the Swiss Barry Callebaut AG together with PT Comextra Majora establish a joint venture PT Barry Callebaut Comextra Indonesia, with an investment of U.S. $ 33 million.
Contacted separately, the Executive Secretary of the Indonesian Cocoa Association (Askindo) Word Bakri said the government should be able to play such a role since becoming a member of the International Cocoa Organization (ICCO), including through the reduction in import duty of cocoa products in several countries.
"Being a member of the ICCO's pay, so it must be proven advantages. In Europe there are import duties, as well as in India. At this rate, Indonesia is not in the same competitive level with Ghana, "he explained.
He said there should be a change of policy by other countries import duties, after the government imposes a duty out of cocoa products.
"Before and after any duty out of the government, processed cocoa products from Indonesia was hit by tariffs in other countries. This causes a non-competitive, and not competitive. Much remains to be done by the government, "he explained.
Word said the government should also be pressing Europe to be more transparency in cocoa prices.
"Do not be like last year, where cocoa prices had touched U.S. $ 3,500 per ton, but suddenly fell to U.S. $ 1,900 per ton. As a member of ICCO, the government should be able to make the existence of price transparency, "he explained.
bisnis.com
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