Saturday, October 22, 2011

IMPORT of FOOD and BEVERAGES from MALAYSIA increase 67.73%


Malaysian entrepreneurs more incentive to go to Indonesia. Besides investing in oil palm plantations, Malaysia food and beverage entrepreneurs also aggressively market their products to Indonesia. This also causes a food and beverage imports from Malaysia increased rapidly.

Data from the surveyor who prepared by the Indonesian Employers Association(Apindo) mentions, food and beverage products imported from Malaysia during January to September 2011 reached U.S. $ 43.12 million. Its value soared 67.7% from the same period in 2010.

Instead, the value of imports during the first nine months of this year already passed the total value of imports of food and beverages from Malaysia last year amounted to U.S. $ 36.56 million. In fact, Malaysia controls 24% of total food imports of Indonesia. It also makes Malaysia as the largest food and beverage exporting country to Indonesia.

Chairman of the Indonesian Food and Beverage Industry Association (Gapmmi) Adhi S. Lukman said, the surge in imports of Malaysian food is quite alarming. Imports from Malaysia easier because of its location near the entrance. More over, the food tastes of the two countries was almost the same. "The Malaysian government also strongly supports the industry by subsidizing sugar and fuel," said Adhi.

Food and beverage products imported from Malaysia are snacks, chocolate, coconut milk, milk, and soft drinks. Besides Malaysia, the imports from Vietnam, although still small should also be wary of. Throughout January-September 2011, drinks food imports from Vietnam reached U.S. $ 2.21 million or an increase of 551.85%. According to Adhi, Vietnam want to emulate Singapore, although a small country but its trade forward.

Total value of imports of food and beverages from around the country that recorded during the nine month U.S. $ 176.07 million. That figure is up 16.15% from the same period of 2010.

Imports are dominated by countries in the ASEAN region whose value reached U.S. $ 85.83 million or an increase of 28.32%. While imports from China amounted to U.S. $ 23.56 million. The value of imports from China rose 5.26%, but the portions of the total imports decreased from 14.76% to 13.37%.

Deputy Secretary General Apindo Franky Sibarani said, the increase in imports from countries in the ASEAN region, especially Malaysia into a separate warning for Indonesia prior to entering the ASEAN Economic Community by 2015. "Let us not only used for 50% of the ASEAN market in Indonesia," he said.

Actually, imported products on the market far larger than officially recorded data import. Franky said, illegal food imports could reach double the official imports. The illegall imported products that enter through the unofficial ports in very much. Whereas imported products should only go through the 5 port official imports.

Therefore, Gampmmi asked for the government more stringent oversee the unofficial harbor. The government should also increase the competitiveness of domestic industries, such as building infrastructure and meet the needs of industrial gases. To suppress the amount if imported food and beverages from Malaysia, policies of each ministries should also be aligned. The government must clearly give their attention on the industry to add value rather than trade alone.