China is set to become just the fifth country to receive preferential treatment under an Indonesian horticulture import access rule introduced last year, according to the Jakarta Post.
A mutual recognition agreement between the two countries is likely to be signed in coming months, allowing Chinese products to enter Indonesia via the country’s largest port Tanjung Priok in North Jakarta.
Tanjung Priok has been off limits to horticultural imports since the Indonesian Government limited the number of entry points from eight to four in June last year.
Currently, the US, Australia, Thailand and New Zealand are the only country’s to secure exemptions under the regulation.
Indonesian agriculture minister Suswono confirmed a memorandum of understanding had been signed with China over the trade concession.
He also insisted Chinese imports would not flood Indonesia’s horticultural market.
“China has proposed to bring in their products through Tanjung Priok, but we will continue supervising imports [from China] to block low quality products or those that contain hazardous chemicals and make sure that only good quality products can go through,” Suswono told the Jakarta Post.
China remains one of Indonesia’s largest suppliers of horticultural products, accounting for 90 per cent of the South East Asian nation’s orange imports and 70 per cent of apple imports in 2012, according to data released by the agricultural ministry.
However, the import regulation has clearly had an impact on trade, with Chinese orange exports to Indonesia over January and February 2013 down 54,444.6 tonnes on the corresponding period last year.
No comments yet