Indonesia: Import tariff on animal feed raw materials rises

The Indonesian Minister of Finance, through regulation number 13/PMK.011/2011, will per January 1, 2012 will charge import duty tariff of 5% on 23 tariff items for animal feed raw materials including 91 types of raw materials.

The general chairman of Indonesian Feed Mills Association, Sudirman FX said, “The enforcement of the regulation which raised the import tariff of 0% to 5% will cause poultry feed price rises. Ultimately the price of poultry meat and eggs will also rise.” He predicts that poultry feed prices would increase by 10% due to the enforcement.

Sudirman agrees on the corn import tariff of 5%, because it aims to enhance the competitiveness of the domestic corn growers. But the feed raw materials such as rapeseed, soybean meal and DDGS which are not produced domestically should not have imposed import tariffs of 5%, because there is no impact on domestic farmers he argued.

DDGS imports in 2010 reached 200,000 tonnes. In 2011, it reached around 300,000 tonnes and in 2012 the amount will increase again as predicted. So with the enforcement, feed mills will be burdened, Sudirman concluded.