AIPGI คัดค้านนโยบายหยุดนำเข้าเกลือเพราะการผลิตในอินโดนีเซียไม่เพียงพอ

Indonesian Salt Industry Association (AIPGI) President Chushu Sutara admitted to opposing the government’s policy to ban imports of salt for food and pharmaceutical products, which was set to begin this year, arguing that domestic production could not meet the industry’s needs.

“We fully support the government’s program in the food sector, but it must be considered rationally and impartially. If domestic production cannot meet the demand for food and medicine, we have no choice but to adopt an import policy to maintain the status of the industry,” Chuchu said when contacted by Tempo News Agency on Saturday, January 11, 2025.

The Indonesian government has officially suspended the import of salt for food and pharmaceutical products from January 1, 2025 onwards. This regulation was stated in Presidential Regulation (Perpres) No. 126 of 2022 regarding concerns over domestic salt production. As a result of this policy, the government has blocked the import of industrial salt, except for those required by chlor-alkali plants (CAP).

He said the government has a responsibility to source industrial raw materials and viewed the foreign exchange market of the food and pharmaceutical industry as profitable enough to justify the cost of imports.

Mr. Chuchu, who also serves as chairman of the West Java Chamber of Commerce and Industry (Kadin), detailed that the food industry relies on imports of 600,000 tons per year and the pharmaceutical industry 6,000 tons per year, with CAP (chlor Alkali) or factories that produce essential basic chemicals still allowed to import leading the pack with an import rate of over 2.3 million tons per year.

According to Mr. Chu Chu, salt imports are of great importance to the industry’s competitiveness and production continuity, especially in a situation where the domestic market is flooded with imported products.

Currently, Indonesia has only 26,000 hectares of salt fields. This figure includes the main land managed by PT Garam. The state-owned enterprise can produce no more than 1.5 million tons of salt per year, and the quality is not up to par. That figure is not enough to meet the overall salt demand of 4.3 million tons. “People often think that Indonesia has the largest coastline, but not all of them can produce salt. That is just a myth,” said Chuchu.

He added that every year, the food, pharmaceutical and chlor-alkali industries grow by 5 to 10 percent. Every time Eid al-Fitr, or the Muslim holiday, comes around, the industry increases its production by an average of 1 to 3 times, which means that the demand for salt also increases. Without additional raw materials, the industry cannot continue its production and eventually has to close down. It is not that they do not want to rely on domestic production, as many food industries that are members of the association do. However, he admitted that he has received many complaints and rejections from consumers about the quality of domestic salt that is not up to standard due to low sodium chloride content.

Renee Yanita, Director-General of the Department of Chemicals, Pharmaceuticals and Textile Industry, Ministry of Industry (Kemenperin), said on Monday, November 18, 2024 that the government did not completely rule out the possibility of relaxing the import of refined salt for pharmaceutical needs because even though the industry has grown, the production of salt from farmers and cooperatives to meet this demand is still lacking.

Ms Renee admitted that the pharmaceutical industry is not ready to stop importing and replace it with domestic salt, as changing the source of raw materials is a long process.

The industry will need to obtain a Certificate of Excellence (CPOB) from the Food and Drug Administration (BPOM), a process she said could take up to two years.

Office Opinion

The Coordinating Minister for Food Affairs announced that from January 1, 2025, Indonesia will stop importing edible salt. This policy has been extended to other essential commodities such as corn, sugar and rice for consumption, which will be implemented in the same year. However, the import of industrial salt for the Chlor-Alkali Plant (CAP) sector will be exempted.

The government aims to increase domestic edible salt production to 2.25 million tons by 2025, exceeding the projected domestic demand of 1.76 million tons. However, the Indonesian Salt Industry Association (AIPGI) has expressed concerns about the plan, citing insufficient domestic salt production and substandard quality, which are affected by low sodium chloride content. In addition, the Directorate General of Chemicals, Pharmaceuticals and Textile Industries, Ministry of Industry, supported and admitted that domestic salt production by farmers and cooperatives still does not meet pharmaceutical industry standards. Therefore, the government should consider relaxing import restrictions on refined salt in particular to address these shortcomings. This presents an opportunity for salt from Thailand, focusing on niche markets, such as refined salt for pharmaceutical needs, as this is a sector where local production is still insufficient.

Indonesia import statistics

HS code 2501 (Salt ( including table salt and denatured salt) & table salt (sodium chloride) , sea water : whether in aqueous solution or with anticaking agents) 

From the above table, Indonesia’s total salt imports (HS 2501) have shown steady growth from 2019 to 2023, reaching their peak value of USD 135.4 million. However, the import value from January to November 2024 was USD 110.5 million, down by 4.98% compared to the same period in the previous year.

Australia is the largest exporter of salt in Indonesia, with export value increasing continuously in the past few years. In 2023, it was valued at 106.79 million US dollars, with a total market share of 78.86%. Although the export value from January to November 2024 decreased by more than 10%, the market share increased slightly to 78.88%. India came in second at 19.63%, up from 18.49% in the previous year. The growth of 34.36% was due to the pricing in line with the market and the ability to supply industrial salt.

The value of Thai exports to Indonesia over the years has shown a fluctuating trend, with the highest value in 2023 at 199,396 USD. However, the value from January to November 2023 compared to the same case in 2024 has decreased by as much as -77.08%. The market share has also decreased rapidly from 0.15% in 2023 to 0.04% in January to November 2024, reflecting Thailand’s ability to compete in the rapidly shrinking Indonesian market. This may be due to several factors, including increased competition from major manufacturers and distributors such as Australia and India.

อ่านข่าวฉบับเต็ม : AIPGI คัดค้านนโยบายหยุดนำเข้าเกลือเพราะการผลิตในอินโดนีเซียไม่เพียงพอ