Indonesia's wheat flour production threatened to drop 50%, import rules revised

Published Apr 17, 2024

Tridge summary

The Indonesian Wheat Flour Producers Association (Aptindo) has expressed serious concerns over Minister of Trade Regulation No. 36/2023, warning that it could drastically reduce the national wheat flour production by up to 50% between April and June 2024 and lead to a significant price increase. This is due to the regulation's impact on the importation of Fortified Premix, which is crucial for wheat flour fortification. The Ministry of Trade has acknowledged these concerns and is considering an exemption for these premixes from the import restrictions. A revision of the regulation is underway, aiming to address and potentially revise import regulations to prevent a shortage of wheat flour and ensure compliance with the Mandatory Indonesian National Standard (SNI) for Fortification, thereby avoiding adverse effects on the market and the poor.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Jakarta, CNBC Indonesia - The Ministry of Trade (Kemendag) responded to complaints from the Indonesian Wheat Flour Producers Association (Aptindo), which stated that Minister of Trade Regulation (Permendag) No 36/2023 threatened the availability of national wheat flour stocks. It is said that this regulation could cause production to fall by 50% which would then cause the price of wheat flour to soar. For this reason, Aptindo also requested that the government exclude fortifying premixes or wheat flour auxiliary ingredients from the regulations regarding restrictions on imports of goods (lartas). Director of Imports at the Ministry of Trade, Arif Sulistyo, said that his party had received a letter from Aptindo regarding the dwindling availability of fortifying premixes for the national flour industry as a result of changes in import regulations. "Yes, yesterday we received a letter from the association proposing to exclude from lartas (meaning free goods) for HS Code 2106.90.73 ...

Source: Cnbcindonesia