Tuesday, 17 April 2012


             Seaweed was a premium commodity of marine products with high economic value and strong competitive edge at the local as well as overseas market. Seaweeds were highly marketable because, while being edible as food, it also had a wide range of benefits and utilities. The export destination countries for seaweed know for their highly promising market were among others Denmark, Japan, China, the Philippine, Korea, Taiwan, Australia and America, as well as other countries in Asia and Europe where seaweed was in high demand.

         In view of the vast market opportunity for seaweed, seaweed producers combined in the Indonesian Seaweed Association (ARLI) urged the Government to ease rules on export of seaweed. Chairman of ARLI Safari Aziz in Jakarta yesterday (Thursday 22/3/2012) complained that the complicated procedures of export permit application made it difficult for business people to export products. Azis also complained about the ever increasing export expenses for seaweed to destination countries. “Frankly we object the process of Certificate of Legal Origin (CoLO) application, i.e. certificates which testified origin of seaweed (from nursery or natural harvesting) issued by the Ministry of Maritime and Fishery (KKP)” Safari underscored.

            Safari disclosed that to obtain CoLO exporters were obliged to possess three required documents, among other. Fishery Business Permit (IUP), Health Certificate (HC) and Letter of process worthiness (SKP). Today, he said, bureaucracy for seaweed were not properly integrated and therefore made business difficult for businesspeople. Safari set as an example, companies who processed seaweed were already holding industry permit, still they had to own SKP issued by KKP.

         While it was hard to obtain permit, according to Safari, the cost to obtain CoLO was rated as high if  calculated on the basis of volume of goods at Rp 1 to Rp 2.5 million per container. The tariff was still higher compared to cost for Certificate of Origin (CoLO) released by the Ministry of Trade or KADIN priced at Rp 200,000 without regulating the number of containers. He suggested that the Government should learn from the Government of China or other competitor countries who were helping exporters to compete in the international market, instead by imposing high tariff like Indonesia did which was not pro business.

             Safari had the objection against the obligation to present certification of product’s origin by KKP, because it was making bureaucracy even more complicated and hard to export seaweed. The pont was, that businesspeople must spend more cost to apply for certificate. For example, CoLO this requirement made export cost higher as the procedure were longer, starting from permit application to delivery. “Every phase of process needed extra cost, which made our products less competitive at the export market” Safari remarked.

          For that matter, through Kadin Indonesia Safari had asked the Ministry of Industry and the Ministry of Foreign Affairs to simplify requirements for seaweed exporting. Safari underscored that he planned to stop Chile bound deliveries unless three was respond from the Government. He expected that the Government followed up demand from ARLI. For that matter he would propose the Government to reconsider the obligation to obligation to obtain SKP or even abolish it. 

Business News - March 28, 2012

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