HKTI Opposes Government Plan to Abolish Import Duties

The Association of Indonesian Farmers (HKTI) has protested a government plan to abolish import duties on staple foods, saying it will damage the country's economy.

"The plan to abolish import duties on staple foods will not only be detrimental to Indonesia's economy as a whole due to the loss of revenue from the duties themselves, but it will also affect the livelihood and the future of [Indonesian] farmers", the association's head of the trade, Ismed Hasan Putro, said January 24, 2011 , Antara news agency reported.

The government has planned to revoke import duties on staple foods in anticipation of soaring staple food prices due to climate changes that have disrupted planting and harvesting periods.

Ismed said that the duty exemptions could temporarily curb inflation, but added that the plan was "premature", saying most developed countries had not lifted their non-tax barriers to protect their domestic agricultural sector.

"The government's plan to stifle inflation should be drawn comprehensively and transparently. National interests, especially the interests of those working within the agricultural sector, must become the government's first priority," Ismed said.