Indef: Govt Shows Sectoral Ego by Diverting Salt Import Rights
18 March 2018 16:36 WIB
TEMPO.CO, Jakarta - Institute for Development of Economics and Finance (Indef) Economist Bhima Yudhistira said that the government showed it`s sectoral-ego by diverting the right to recommend industrial salt imports from one ministry to another.
The government granted the right to recommend industrial salt imports to the Ministry of Industry from the Maritime Affairs and Fisheries Ministry.
Bhima explained that the industry would be benefit this new rule since the permits to import salt can be much quicker. “But we must see its effect on local salt farmers,” said Bhima today.
He views that the Maritime Affairs and Fisheries Ministry has played the role as a non-tariff barrier to prevent imported salt flooding the domestic market. However, he argues that if that role is eliminated, the salt production of domestic salt farmers can be dramatically reduced.
According to his records, there were 30,668 domestic salt farmers in 2012. That number has decreased to 21,050 in 2016. “This means that there are 9,600 salt farmers switched professions,” said Bhima.
Earlier this year, Maritime Affairs and Fisheries Minister Susi Pudjiastuti was furious that her ministry’s 2.2million tons of salt import recommendation was questioned by the Coordinating Minister of Economic Affairs Darmin Nasution, who then decided to import 3.7million tons.
Minister Susi said that 3.7million tons exceeded her Ministry’s salt import recommendation.
Bhima argues that the problem between the two Ministries and their right to recommend imported salts is caused by the difference in data records. He claims that the problem between the two ministries could have been solved in a coordination meeting between the two parties.
CHITRA PARAMAESTI | FAJAR PEBRIANTO