Category: Economy

Gojek’s solution to plastic pollution

The Indonesian do-it-all app Gojek is taking steps to tackle the mounting problem of plastic waste, to which it has inadvertently contributed through its hugely popular food delivery service.

Gofood is now available in 74 cities with 400,000 food merchant partners, most of them small and mom-and-pop eateries previously unserved by existing food delivery services. That adds up to a lot of packaging in a country that is already the second-biggest source of plastic waste after China in the world’s oceans.

 

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A scavenger was sorting and collecting plastic bag waste at the top of a garbage mountain in Bantar Gebang landfill in Bekasi, West Java, where tonnes of trash from Jakarta is dumped everyday. Photo: The Parrot/Ismira Lutfia Tisnadibrata

Gojek co-founder Kevin Aluwi, speaking at an event to unveil a new corporate logo last month, said some food merchant partners had begun charging customers for plastic spoons and forks, and some have switched to biodegradable or paper-based container bags, while Gofood itself is ready to do its part.

“Starting this month (July), we are distributing special bags to drivers whose Gofood order volumes are high. The bag can contain a lot of food orders, so there is no need to use plastic bags anymore,” Kevin said, responding to a question about how the company aimed to solve the plastic waste problem.

The anti-waste initiatives are in keeping with the spirit embodied by the new logo, which resembles a simple power-on button and has been dubbed as “Solv”. Gojek is aiming to be Southeast Asia’s super app offering more than 20 on-demand services, including grocery shopping, house cleaning, massage, laundry and vehicle maintenance and repair in a single platform.

That’s in addition to the document delivery and motorcycle ride-hailing services that were the first offerings of the company when it was founded in 2015. Now valued at US$10 billion and offering services from food to finance, Gojek is looking to make itself indispensable to customers.

The food delivery service is now available in Vietnam, where it is the second-biggest player in the segment, and in Thailand, where the company has expanded along with its motorcycle taxis and car-hailing services.

Gojek is now eyeing Singapore where its car drivers may have to handle food deliveries because the city-state doesn’t recognize motorcycle taxis, said Andre Soelistyo, president of the Gojek group.

“Gofood has become the largest food delivery service in Southeast Asia, even larger than similar services in India even though our population is only a quarter of India’s,” he said.

But food delivery apps have become so popular in so many countries that excess use of takeout plastic containers, utensils and packaging has become a major concern.

The Indian restaurant portal Zomato, which has a food delivery service that processes 16.5 million orders a month, is a case in point. Founder and CEO Deepinder Goyal wrote in a September 2018 blog post that an “unintended consequence” of the business was that it had increased the use of more plastic packaging material.

All the food delivery aggregators in India combined process around 35-40 million orders a month, he wrote.

“These many orders add up to 22,000 metric tonnes of plastic waste created every month in India. And whether we intend it or not, quite a lot of it ends up in the ocean,” Deepinder wrote.

The Zomato app now offers consumers an option not to include plastic cutlery in their orders and works with food merchant partners to help them comply.

“Much as we care about delighting our partners and our users, we must also care about the impact we have on our planet,” Deepinder wrote.

Read the full story in Bangkok Post

 

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Indonesia’s Muslims urged to ‘go green’ and ditch plastic bags on Eid

 

Screenshot_2019-08-11 Kerajinan Indonesia craftindo on Instagram “Stok besek Size 18 x 18 cm spesial for #besekkurban Ready[...]
Photo: Instagram @kerajinan_handycraft_indonesia

Indonesia is urging Muslims to use eco-friendly packaging when distributing sacrificial meat on Eid Al-Adha this year, as the country fights to reduce the amount of plastic waste it produces.

Indonesia is second only to China when it comes to dumping plastic waste in the ocean and, with a Muslim-majority population, the use of plastic bags to package sacrificial meat could lead to tens of thousands of tons of additional waste. Indonesia is estimated to produce an estimated 25,000 tonnes of plastic waste every day, many of which end up in the ocean.

The slaughter of an animal — qurbani — is carried out in remembrance of the Prophet Ibrahim’s willingness to sacrifice his son Ishmael at Allah’s command.

Regional leaders across Indonesia were last month urged by the government to tell people to bring their own reusable containers instead of single-use plastic bags for the sacrificial meat.

“Alternatively, they can replace plastic bags with wrappings from banana or teak leaves, woven bamboo baskets, or other biodegradable or reusable packaging,” an official from the Ministry of Environment and Forestry, Rosa Vivien Ratnawati, said in a circular.

Jakarta Governor Anies Baswedan said the use of woven bamboo baskets would help to reduce plastic waste and generate additional income for local tradesmen, while Central Jakarta Mayor Bayu Meghantara said his office would distribute 500 woven bamboo baskets to qurbani committees.

Abu Hurairah Abdul Salam, a spokesman for Istiqlal Mosque in Central Jakarta, said the qurbani committee had started using plastic bags made of cassava pulp four years ago.

“But, in accordance with the governor’s instructions, we will be using woven bamboo baskets to distribute qurbani meat this year. We have prepared 5,000 baskets and, if we run out of baskets, we will be using biodegradable cassava plastic bags,” he said.

The mosque slaughtered 30 cows and 20 goats this year.

North Jakarta’s Ancol Dreamland Park will hand out sacrificial meat to the first 100 recipients in woven bamboo baskets, or besek.

“We will wrap the rest of the qurbani meat packages, which on average are up to 5,000, in biodegradable, cassava-based bags. This is one of the many policies that park management has issued to address the waste problem. We have stopped using plastic straws at all vendor stalls,” Ancol spokeswoman Rika Lestari said.

The Indonesian Council of Ulema is backing the nationwide green initiative.

“We can take this Eid moment to start a new habit by using eco-friendly bags and to change our society’s dependence on plastic bags,” council’s fatwa committee official Hasanuddin Abdul Fattah said in a statement.

Read the original story in Arab News

Ada cerita di balik MRT Jakarta

Tidak seperti kota-kota besar lainnya di dunia, Jakarta tidak punya daya tarik khusus yang bisa menjadikannya sebagai tujuan utama bagi para wisatawan asing. Kecuali ada agenda bisnis untuk dilakukan di Jakarta, banyak turis asing yang hanya sempat melihat bandara, sebelum pada akhirnya melanjutkan perjalanan ke kota lain di negara ini.

Kenapa begitu? salah satunya karena kemacetan lalu lintas Jakarta yang sangat terkenal, ditambah jaringan transportasi umum yang membingungkan dan kurang bisa diandalkan. Tidak heran jika hanya sedikit orang asing yang ingin menghabiskan waktunya di Jakarta.

Namun hal tersebut bisa jadi berubah seiring dengan peluncuran MRT pada bulan Maret ini. Sebuah sistem kereta cepat massal pertama yang kehadirannya sudah lama ditunggu-tunggu oleh banyak orang.

Saat dilakukan tes uji coba pada 30 Januari lalu, wartawan diberikan kesempatan untuk mencoba MRT dengan perjalanan bolak-balik antara bundaran Hotel Indonesia di Jakarta Pusat ke Lebak Bulus di Jakarta Selatan. Kereta berjalan tepat waktu selama 30 menit dengan pemberhentian selama 30 detik di stasiun bawah tanah dan stasiun atas yang keseluruhannya berjumlah total 13 stasiun.

“Kami melakukan pengujian dengan skenario keberangkatan terlambat di salah satu halte, serta bagaimana sistem bisa mengejar waktunya supaya semua jadwal kereta akhirnya bisa berjalan normal,” ujar Direktur Utama PT. MRT Jakarta, William Sabandar, dalam perjalanan tersebut.

Pada 25 Januari, pembangunan jalur MRT sudah selesai 99 persen dan perusahaan kemudian menjalankan pengujian secara terintegrasi. Delapan kereta dijalankan secara bersamaan dengan interval 10 menit untuk menguji ketepatan waktu operasi normal, juga untuk memastikan bahwa pintu platform bekerja sesuai dengan keberangkatan dan kedatangan kereta api.

Pada akhir Februari, perusahaan melakukan uji coba penuh bersama dengan simulasi untuk situasi darurat hingga 11 Maret. Uji coba tersebut terbuka untuk partisipasi publik terbatas, sebelum akhirnya layanan penuh perdana diluncurkan pada akhir bulan Maret.

Muhammad Kamaluddin, kepala strategi perusahaan MRT Jakarta mengatakan, selama operasi awal enam kereta latih yang dibangun oleh Nippon Sharyo dan Sumitomo Corp dari Jepang tersebut akan mampu mengangkut hingga maksimum 1.900 penumpang. Jam operasional MRT akan dimulai sejak 5.30 pagi setiap harinya, dengan keberangkatan dari kedua ujung jalur, serta keberangkatan terakhir sampai 10.30 malam.

Terdapat beberapa gerbong kereta yang didedikasikan khusus untuk penyandang disabilitas, dimana gerbong tersebut akan berhenti sangat dekat dengan lift di stasiun. Selain itu, juga akan ada petugas yang ditunjuk secara khusus untuk melayani penumpang wanita di jam-jam sibuk.

“Secara bertahap kita akan meningkatkan jumlah kereta menjadi 14. Kereta akan berjalan dengan kecepatan 30 kilometer per jam untuk perjalanan sejauh 16 kilometer,” tambah Kamaluddin.

Pengerjaan tahap kedua untuk memperluas jalur MRT ke bagian utara kota juga akan segera dimulai, dimana konstruksi diharapkan akan selesai pada 2024 dan operasionalnya akan dimulai pada 2025.

“Kami masih dalam persiapan. Peletakan batu pertama bisa berlangsung kapan saja, tetapi tidak ada yang menghambat atau menunda pembangunan fase kedua, semua berjalan sesuai rencana,” kata William Sabandar.

Fase kedua akan memperpanjang jalur dari bundaran hotel Indonesia ke Kampung Bandan di Jakarta Utara dan setelah selesai akan menjadi jalur lengkap yang terentang dari ujung selatan ke ujung utara Jakarta.

“Kami menetapkan target untuk menyelesaikan proyek tersebut dalam lima tahun,” kata Kamaluddin, sambil menambahkan bahwa delapan stasiun di jalur kedua akan berada di bawah tanah dan beberapa akan diintegrasikan dengan jaringan bus Transjakarta milik pemda DKI. Tapi pembangunan untuk tahap kedua tersebut akan menemui sedikit kesulitan karena harus melewati Monumen Nasional atau daerah Monas, yang disebut sebagai daerah ring satu di Jakarta Pusat, dimana istana presiden dan kantor-kantor pemerintahan berada.

Januar Wibisono, seorang pekerja yang berkantor di salah satu gedung di kawasan bisnis Sudirman-Thamrin di mana jalur MRT beroperasi di bawah tanah, mengatakan dia bersemangat untuk mencoba layanan ini dan berharap MRT akan membuat perjalanan hariannya dari sebuah lokasi di pinggiran selatan Jakarta jauh lebih mudah. ​​

“Gedung kantor saya berada di dekat stasiun Bendungan Hilir. Saya akan memarkir motor saya di dekat stasiun Lebak Bulus dan naik kereta dari sana. Jika total 30 menit hingga akhir jalur, saya perkirakan akan membutuhkan waktu 20 menit untuk sampai ke tujuan saya,” katanya.

Stasiun Bendungan Hilir adalah salah satu dari enam stasiun bawah tanah di area bisnis, yang dimulai dari stasiun Sisingamangaraja. PT MRT Jakarta menawarkan sponsorship untuk hak memberikan nama bagi setiap stasiun sesuai dengan nama asli stasiun, dalam upaya menghasilkan pendapatan diluar tarif. “Tapi stasiun Sisingamangaraja akan menjadi pengecualian. Stasiun itu akan diberi nama Sisingamangaraja Asean untuk menandai gedung Sekretariat Asean di dekat stasiun,” kata Sabandar.

Bersama dengan sistem light rail transit (LRT) yang diperkirakan akan mulai beroperasi tahun ini, diharapkan dapat menggeser orang dari pemakaian kendaraan pribadi ke transportasi umum, sehingga akhirnya dapat mengurangi kemacetan lalu lintas di Jakarta. Di beberapa lokasi, moda transportasi umum akan melintasi jalur stasiun terintegrasi, seperti stasiun Dukuh Atas di Jakarta Pusat, yang terintegrasi dengan kereta api bandara, kereta komuter, dan bus reguler, juga Transjakarta.

Jalan-jalan di Jakarta tersumbat melebihi kapasitas karena terjadi peningkatan pertumbuhan sepeda motor yang dipicu oleh mudahnya mendapatkan kredit motor serta hadirnya aplikasi ojek online. Menurut data dari Badan Perencanaan Pembangunan Nasional, kemacetan di Jabodetabek diperkirakan menyebabkan kerugian ekonomi sebesar 100 triliun rupiah per tahun.

Untuk mendukung peralihan ke MRT, pemerintah kota DKI juga telah memperbaiki trotoarnya yang tidak rata agar mendorong lebih banyak pejalan kaki dan memungkinkan penumpang yang keluar dari stasiun berjalan kaki ke tujuan mereka.

Jakarta juga dijuluki sebagai salah satu kota yang paling tidak ramah bagi pejalan kaki. Menurut hasil sebuah studi yang dilakukan oleh Universitas Stanford yang diterbitkan pada tahun 2017, orang Indonesia termasuk dalam kategori pejalan kaki paling malas di dunia dengan rata-rata 3.513 langkah setiap harinya, dibandingkan rata-rata di seluruh dunia, yaitu 5.000 langkah.

“Saya sudah menyerah nyetir mobil kalau bepergian sehari-hari sekitar 15 tahun yang lalu, karena saya benar-benar tidak tahan dengan kemacetan,” kata Rani Cahyawati, seorang karyawan yang bekerja di kantor dekat bundaran Hotel Indonesia.

“Setiap hari saya mengandalkan apa saja yang ada, baik itu bus kotor, bus tua, bus Transjakarta, taksi, atau ojek. Jadi, saya benar-benar menantikan MRT dan LRT untuk beroperasi. Sudah waktunya bagi Jakarta untuk dimodernisasi dan lebih beradab bagi masyarakat dan pengunjungnya,” tambahnya.

*Pertama kali diterbitkan dalam versi bahasa Inggris di Bangkok Post

Indonesia threatens retaliation over EU palm oil ‘intimidation’

Biofuel producers in Indonesia called on the Indonesian government and European Union to find a “win-win solution” to a dispute over an EU legislation that will phase out palm oil-based biofuel manufacturing in the bloc, risking jobs and billions of dollars in Indonesia’s revenue.

Last week, Coordinating Minister for Maritime Affairs, Luhut Binsar Pandjaitan, warned that if the EU implements a ban on palm oil imports, Indonesia would retaliate strongly with possible bans on European products, including passengers jets, train coaches, and motor vehicles.

“We want a win-win solution. Retaliation is not a favorable option but, eventually, what else can we do? It could become necessary if we keep being intimidated,” said Master Parulian Tumanggor, chairman of the Indonesia’s Biodiesel Producers Association.

“If they stop biofuel, millions (of workers and farmers) will become unemployed. We don’t want that,” he added.

ILT-Riau haze 177

Pandjaitan said that with Indonesia’s aviation industry expected to expand threefold by 2034, the country will require about 2,500 aircraft in the next two decades — a big market for European companies.

Aircraft demand from Indonesia is worth more than $40 billion and it will create millions of jobs.

“It’s a matter of survival. If they treat us like this, we will retaliate strongly. We are not a poor country, we are a developing country and we have a big potential,” Pandjaitan said in a briefing with the EU ambassador to Indonesia, Vincent Guerend, and European investors.

Darmin Nasution, chief economic minister, said Indonesia is considering a challenge to the EU legislation via the World Trade Organization, and will seek support from the Council of Palm Oil Producing Countries and the Association of Southeast Asian Nations.

Indonesia and Malaysia together produce about 85 percent of the world’s palm oil.

Foreign Minister Retno Marsudi spoke with her Malaysian counterpart, Saifuddin Abdullah, on the sidelines of Organization of Islamic Cooperation emergency meeting in Istanbul on Friday.

“We agreed to work together to fight against discrimination of palm oil in the EU,” she said via Twitter.

Nasution said palm oil contributed $17.89 billion to Indonesia’s economy in 2018 and almost 20 million workers depended on the plantations for their livelihood.

On March 13 the European Commission adopted new rules on biofuels based on sustainability criteria with a two-month scrutiny period. The EU said “best available scientific data” show palm oil plantations are a major cause of deforestation and climate change.

Palm oil plantations in Indonesia have resulted in massive deforestation on the islands of Sumatra and Kalimantan.

Guerend acknowledged the importance of palm oil to Indonesia in terms of jobs, but said that there was some flexibility in the regulation.

“It will be further modified in a few years’ time. It’s not cast in stone forever as the industry is dynamic, expanding, and reforming, and we take that into account,” he said.

“Our invitation for everyone is to work on sustainability because it’s in everybody’s interest,” he added.

This story was first published on Arab News

Indonesia’s HIV medication muddle

HIV patients in Indonesia have been forced to adjust their daily medication routine because of problems with the government’s medication procurement program.

They are now taking single-dose medication twice a day for their antiretroviral (ARV) therapy regime, as the country is facing a scarcity of the fixed-dose combination medication in one tablet that only needs to be taken once a day.

The ordeal began when a tender from the health ministry to procure the drugs in 2018 failed twice because of agreements over pricing issue, according to Indonesia AIDS Coalition (IAC), a non governmental organization.

The limited tender process, which only involved two state-owned pharmaceutical companies, became deadlocked, and as a result the available supplies in inventory ran out last year.

Selvin Pancarina, a HIV/AIDS activist based in Surabaya, East Java, said she had to switch to the single-dose medication two months ago after using the fixed-dose combination ARV medication that contains tenofovir, lamivudine and efavirenz (FDC TLE) since 2012.

Even though supplies of the single dose drugs remain steady and she continues the medication, she admitted that it has not been easy to switch her routine after six years taking medication just once a day before she goes to bed.

“I have to be more disciplined with the new regime, by taking them in the afternoons and the evenings,” she said. “Sometimes I forget to take the afternoon medication, not to mention that each drug is said to have side effects if taken separately and there are contradictions to certain foods, so we have to be stricter in our diet and really pay attention to what we eat before we take the drugs.”

“One of the drugs we take separately is said to cause a side effect on the kidneys if we don’t take it with a lot of water. So, we keep wondering if the water we are drinking with the drugs is ever enough,” she added.

Selvin said members of her organization, Ikatan Perempuan Positif Indonesia (IPPI) or Association of Positive Women Indonesia had also experienced discomfort and irregularities in their daily routines after switching from fixed-dose to single-dose medications.  “The effect of single-dose medication is different in every patient. Some really have a hard time adjusting, some even experience hallucination or insomnia. They can’t sleep well at night and it causes them to feel dizzy and exhausted the next day,” she said.

The ARV medication is fully subsidized by the government and available to HIV patients at 895 distribution points such as hospitals and healthcare centers in all 34 provinces. In 2017, the government allocated about 800 billion rupiah for the medication.

Aditya Wardhana, the IAC executive director, said that changing medication to single doses poses risks that some of the drugs may not be available at the same time for every patient. As well, there are some patients that can only take two drugs instead of all three, resulting in sub-optimal treatment.

He added that although the fixed-dose combination drugs are still available, they are now in very limited supply, which constitutes an “emergency”.

“The safe benchmark to ensure drugs availability is for there tobe enough supply for at least six months at the national and regional levels. Now, it’s only available for less than one month at the national level and three months at the regional level,” he said.

Even though a tender for drug procurement is being processed, it will be a while before the drugs are available again.

“If the process goes well and no glitches in the process, we can have the stock back to normal by June,” he said.

The health ministry has reassured patients that the ARV medication supplies will be in adequate quantities for the rest of the year.

“The procurement tender for next year’s supply of fixed-dose combination is being processed,” ministry spokeswoman Widyawati said.

The ministry’s pharmaceutical and medical devices director general, Engko Sosialine Magdalene, said the availability of ARV supply has taken into account the average growth in the number of patients by about 1-3% per month.

She also said the ministry had taken steps to ensure the drugs are available by receiving a grant to import 222,000 bottles of fixed-dose ARV medication in December last year from the Global Fund, a financing group that fights AIDS, tuberculosis and malaria. Each bottle contains 30 tablets.

”These 222,000 bottles are enough to meet patients’ needs for the next five to six months,” she said, adding that the ministry has also prepared 564,000 bottles of ARV medication by the end of 2019 and that the government continues to provide and allocate spending to procure ARV medication.

HIV/AIDS case in Indonesia was first found in Bali in 1987. According to health ministry data, the number of HIV patients in the country as of October 2018 was 305,000, and 107,000 of them were on medication.

According to UNAIDS, the key populations in Indonesia that are most affected by HIV are sex workers, with a HIV prevalence of 5.3%, gay men and other men who have sex with men, with an HIV prevalence of 25.8%, people who inject drugs (28.76%), transgender people (24.8%), and prisoners (2.6%). New HIV infections have decreased by 22% and AIDS-related deaths have increased by 68% since 2010.

Wardhana of IAC said without the ARV medication, it would be hard for HIV patients to maintain their stamina at the same level as the non-HIV people.

“Their health condition can deteriorate. About 95% of people with HIV/AIDS died because they failed to take the medication,” he said.

“By taking the medication regularly, HIV patients can live normally and have the same life expectancy as the non-HIV people.”

This story was first published on Bangkok Post

Jakarta’s zero tariff move to lift Palestinian imports

The Indonesian market could be a testing ground for Palestinian exports’ competitiveness following the introduction of a zero tariff policy.

An agreement with Indonesia on import tariff waivers for Palestinian products came into effect in mid-February after 2.5 years since the idea was floated in Oct 2016.

The initial waiver will apply to fresh and dried dates, and virgin olive oil. Palestine has asked for about 20 export products to be included in the policy.

Tariffs previously were set at 5 percent.

Djatmiko Bris Witjaksono, director of foreign trade analysis and trade center at the Ministry of Trade, said the agreement offers preferential treatment for Palestinian imports, but it will be up to the business community to show its willingness to buy the products.

“Palestine may have to compete with similar products imported from other countries. If the supply and product continuity is reliable, importers will eventually buy from them,” he said.

“The tariff exemption is significant and should be reflected in the products’ pricing in the market. Eventually it will boost the competitiveness of Palestinian products in Indonesia.” Witjaksono said.

Shinta Widjaja Kamdani, vice chairwoman of international relations at the Indonesian Chamber of Commerce and Industry, said the zero tariff policy will boost trade between the two countries.

“Now we have to look at the market opportunity to identify the goods from Indonesia we can export and vice versa. It looks like there is a market there for our food and beverage products,” she said.

Trade Minister Enggartiasto Lukita said the elimination of Indonesian tariffs on Palestinian dates and olive oil began on Feb. 21, when Indonesia’s Foreign Ministry sent a diplomatic note to Palestine.

Zuhair Al-Shun, Palestine’s ambassador to Indonesia, was also told about the tariff move in a meeting with Indonesian Vice President Jusuf Kalla on Feb. 28.

“We hope we will be able to enjoy Palestinian dates in the upcoming Ramadan,” Lukita said in a joint press conference with Palestinian Ambassador to Indonesia Zuhair Al-Shun after meeting the vice president on Feb. 28.

Both countries are considering expanding the policy to create a preferential trading agreement, the trade minister said.

Al-Shun said Palestine has provided a list of products to be considered for preferential treatment by Indonesia.

“The list is being reviewed by the Indonesian government. We also welcome Indonesian products that will be exported to Palestine,” Al-Shun said.

Lukita said the trade agreement is part of Indonesia’s unwavering support for Palestine.

Trade between Indonesia and Palestine was worth $3.5 million in 2018. Indonesian exports to Palestine include coffee, tea, bread and other foodstuffs, while dates and olive oil make up the bulk of its imports.

According to data from Statistics Indonesia, trade between Indonesia and Palestine reached US$3.5 million in 2018. The zero tariff policy is expected to boost date imports by 11.62 percent within a year.

Vice Minister for Foreign Affairs, AM Fachir said the idea to provide preferential treatment for Palestinian products was first floated by members of Palestinian trade delegation attending an international trade expo in Jakarta in Oct 2016.

Lukita and his Palestinian counterpart formalized the idea in a memorandum of understanding (MoU) they signed on the sidelines of the 11th World Trade Organization (WTO) ministerial conference in Buenos Aires, Argentina in Dec 2017, during which Indonesia also endorsed Palestine to be a WTO member.

The MoU was then ratified in Indonesia into a presidential regulation in April 2018, followed by Lukita and Al Shun signing the formal agreement in Jakarta in Aug 2018.

Ministry of Finance then issued two ministerial regulations — on import tariff waivers for Palestinian products and on the technical direction for customs offices to execute the policy.

Issuing the two regulations was the last phase along Indonesia’s legislation process to allow the full implementation of the agreement since they will be circulated to all ports of entry so that customs officers can identify products from Palestine and exempt them from any import duties.

Read the original story here in Arab News

Indonesia to allow tariff-free import of Palestinian dates, olive oil

Indonesia and Palestine have signed an agreement that will allow for zero tariffs on some Palestinian goods imported into Indonesia from next month.

The agreement serves as the implementing guidelines that follows the Memorandum of Understanding signed by Trade Minister Enggartiasto Lukita and his Palestinian counterpart on the sidelines of the 11th World Trade Organization Ministerial Conference in Buenos Aires, Argentina, last December. The MoU allows zero import tariffs for certain goods between the two countries.

“It will be one-way trade from Palestine to Indonesia at the start, but we expect in the future it will be a two-way trade,” the Trade Ministry’s Director General for International Trade Negotiations Iman Pambagyo said.

The initial Palestinian products that will be exempted from import tariffs are fresh and dried dates and virgin olive oil. Pambagyo said that, during the first year of the agreement, dates imported from Palestine are estimated to increase by 11.62 percent, while olive oil is estimated to jump by 172 percent, as a lot of Indonesian cosmetic manufacturers use olive oil as an ingredient in their products.

“We will encourage our importers to benefit from this policy by sourcing their olive oil and dates from Palestine,” Pambagyo added.

Fachry Thaib, head of the Middle East Committee at the Indonesian Chamber of Commerce, said the business community welcomed the agreement and its upcoming implementation.

“We have always encouraged the government to expedite the MoU implementation. This policy would be beneficial for importers since it would make the products more competitive in the domestic market,” he said.

He added the policy will not hit other imported goods, given the big market opportunities for dates, which are widely consumed by Indonesians.

Lukita and Palestinian Ambassador to Indonesia Zuhair Al-Shun signed the agreement on Monday following the ratification of the MoU into a presidential regulation in April.

The finance minister will allow the MoU to fully take effect by issuing two ministerial regulations — on import tariff waivers for Palestinian products and on the technical direction for customs offices to execute the policy.

Pambagyo said these regulations will be circulated to all ports of entry so that customs officers can identify products from Palestine and exempt them from any import duties.

Lukita said this policy was part of Indonesia’s unwavering support for the Palestinian issue, which has always been the focus of its foreign policy.

Indonesia has been a staunch supporter of Palestinian independence and has pledged to focus on voicing support for Palestine during its tenure as a non-permanent member at the UN Security Council in 2019-2020.

Read the full story in Arab News