Flour entrepreneurs in Indonesia shout that production is threatened to drop by 50%

Published Apr 17, 2024

Tridge summary

Indonesia's domestic wheat flour producers are at risk of facing significant production shortages and price increases due to the new Minister of Trade Regulation No 36/2023, updated to No 3/2024, which complicates the import process of Fortified Premixes by requiring an Import Approval (PI) and a Surveyor's Report (LS). The Indonesian Wheat Flour Association (Aptindo) has raised concerns that this could result in a 50% reduction in wheat flour production, adversely affecting millions of SMEs, leading to potential market scarcity and price hikes. Aptindo is urging the government to reconsider the regulation and allow special exceptions for the import of Fortified Premixes to prevent violating mandatory fortification standards and to ensure the stability of the wheat flour supply chain.

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Original content

Jakarta, CNBC Indonesia - Domestic wheat flour entrepreneurs are complaining about the effects of the issuance of Minister of Trade Regulation (Permendag) No 36/2023 concerning Import Policies and Regulations, which has been changed to Permendag No 3/2024. Because it could trigger production shortages and a spike in the price of wheat flour in the country. The Indonesian Wheat Flour Association (Aptindo) is concerned that wheat flour production could fall by 50% as a domino effect of Minister of Trade Regulation No 36/2023. Executive Director of Aptindo Ratna Sari Loppies said, the Minister of Trade Regulation stipulates that the import of Fortified Premixes, which was initially sufficient with a Surveyor's Report (LS), must now require an Import Approval (PI) and LS. "Importing fortified premixes, which previously could be done with LS, now requires an import permit (PI). Because it is included in Minister of Trade Regulation no. 36/2023. As a result, the stock of fortified ...

Source: Cnbcindonesia