Crude palm oil and rubber are commodities Indonesia could rely on to deal with the Asean-China Free Trade Agreement, an Agriculture Ministry official said here on Friday. “Indonesia is a leading producer of raw materials. Plantation products and rice are actually our strength,” the Agriculture Ministry`s secretary general, Hasanuddin Ibrahim, said at Agrinex International Expo 2010.
However it is a pity that rice exports are still small to only a few countries and of certain varieties, he said.
So, the prospective ones will be crude palm oil and rubber in addition to fishery products like tuna, he said.
“Rice will only go to the southern part of China and it is not much while Japan only consumes certain rice varieties,” he said.
With its huge population reaching up to 1.5 billion China has to think hard to meet its food needs and in view of that the chance for Indonesia to enter that country`s market will be bigger following the implementation of ACFTA.
The increasing population and economy in that country will also increase demand for motor vehicles and so Chinese demand for rubber from Indonesia will also be bigger, he said.
“We hope we can export not in the form of raw materials but finished products, namely tires. So the downstream industries need to be boosted,” he said.
Source : Antara
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