increase trade & investment between indonesia and the eu, by
TRANSCRIPT
EU – INDONESIA BUSINESS DIALOGUE (EIBD) FOOD & BEVERAGES
8 NOVEMBER 2012 – BALI , INDONESIA
Harry Hanawi
Vice Chairman of GAPMMI
(INDONESIAN FOOD & BEVERAGES ASSOCIATION)
Increase trade & investment between Indonesia and the EU, by finding soluMons to current market access
problems. Food Categories Issues
INDONESIAN ECONOMIC & DEVELOPMENT OF FOOD INDUSTRY.
Indonesia is aFracIve for investment purposes?
The Government set MP3EI (Master Plan for the AcceleraIon and Expansion of Indonesia's Economic Development). Target to be 12 biggest of the world in 2025.
~ 12 largest
~ 8 largest
8 – 9 % per annum 5 – 6 % per annum
NEW VISION OF INDONESIA
Stepping up to Global Influence....
Food industry is one of 22 main economic acMviMes in MP3EI
FACTS: v Strategic geographic locaIon and strong global presence v Total land area Indonesia is around 1.910.931 km² and sea area is around 3.544.744
km² (BPS, Feb2012) v Second biggest coastline in the world with 104.000 km. (BPS, Feb 2012 ) and +/-‐
13.000 Islands v EsImated more than 241 millions populaIons in 2011 (BKKBN), with socio economic
level :12% high, 40% medium, 48% low class v Average populaIon growth within last 10 years 1,49 % v Dynamic and youthful populaIon (55% < 25 years old) v 49.7 % Women, 50.3% Man (SUSENAS ,2010) v 58% living in rural area and 42% in urban v PopulaIon distribuIon : Java 57,49%, Sumatera 21,3%, Sulawesi 7,31%, Kalimantan
5,8%, Bali /Nusa Tenggara 5,5%, and Maluku/Papua 2,6% (SUSENAS ,2010) v EsImates 30 millions Peoples have strong buying power v 54.5% middle class income in 2010 (World Bank report, 2011) v GDP contribuIon: Java 57.5%, Sumatra 23.6%, Kalimantan 9.5%, Sulawesi 4.8%, Bali
& Nusa Tenggara 2.4%, Maluku & Papua 2.2% (BPS, July 2012) v Income distribuIon: 42.15% for 20% highest income populaIon; 38.10% for 40%
middle income; and 19.75% for 40% lowest income (SUSENAS , 2010) v Average expenditure for food per capita 51.43%, in which 12.79% is contributed by
processed food (SUSENAS , 2010), v Rice as a main staple food v 87% Moslem: Hallal & Thoyyiban v 480 ethnics v Abundance of natural resources
INDONESIA 2012
DEMOGRAPHIC BONUS
WorldRank
Commodity (by Volume) Commodity (by Value)
1 Rubber Nat Dry, Flour of Roots and Tubers, Coconuts, Cake of Palm Kernel, Oil of Kapok, Kapok seed in Shell, Offal Liver Chicken, Sugar, nes , Oil palm fruit, Kapok Fruit, Kapok seed Shelled, Cake of Kapok, Tomato juice Concentrated, Leeks, other alliaceous veg, Cocoa BuZer, Vanilla, Cinnamon (canella), Cloves, Kapok Fiber, Tapioca of Cassava, Palm kernels, Palm oil, Palm kernel oil, Cocoa powder & Cake, Oil Citronella
Leeks, other alliaceous veg, Palm kernels, Coconuts, Palm oil, Vanilla, Cinnamon (canella), Kapok Fibre, Kapokseed in Shell, Cloves
2 Juice of Pineapples, Flour of Fruits, Cake of Copra, Germ of Maize, Pepper (Piper spp.), Cocoa beans, Hides Dry salt Buf, Coconuts Desiccated, Copra, Natural rubber, Bran of Maize, Arecanuts, Coconut (copra) oil, Pineapple Juice Conc, Beans, green, Cocoa Paste, Cocoa husks; Shell, FaZy Acids
Natural rubber, Beans, green, Cocoa beans, Pepper (Piper spp.), Cassava, Arecanuts
3 Milk Skimmed Cond, Bran of Rice, Rice, paddy, Nuts, nes, Nutmeg, mace and cardamoms, Other bird eggs, in shell (Number), Pineapples Cand
Coffee, green, Nutmeg, mace and cardamoms, Rice, paddy, Roots and Tubers, nes, Nuts, nes, Other bird eggs, in shell, Sugar crops, nes
4 Avocados, Maize, green, Fruit, tropical fresh nes, Chilies and peppers, green, Sweet potatoes, Manila Fiber (Abaca)
5 Spinach, Cashew nuts, with shell, Papayas 6 Eggplants (aubergines), Pineapples, Mangoes, mangosteens, guavas,
Bananas, Maize, Cabbages and other brassicas, Ginger
7 Tobacco, unmanufactured, Groundnuts, with shell, Fruit Fresh Nes
8 Indigenous Goat Meat, , Tea, Indigenous Chicken Meat, Hen eggs, in shell
9 Oranges 10 Other Basdibres, Pumpkins, squash and gourds, Indigenous Buffalo Meat,
Soybeans
Indonesia has a huge potenMal of agricultural products
Source: FAO StaIsIcal Yearbook 2010
COMMODITY +/-‐ PER YEAR (1.000 MTON)*
May 2012 (1.000 MTON)
WHEAT 5.500*** 1.970
Wheat Flour 680*** 207
Rice 683,4** 843,7
CORN 1.527,5** 657,1
SOYBEAN 1.740,5** 749,6
GREEN BEAN 300
CASSAVA starch 294,8** 6,4
GROUNDNUTS 195
MILK 2.700
BEEF 75
Raw Sugar 2.400 2,174,080****
SALT for consumpMon (depend on seasons) 775**
*esImated **Calculated by Kadin from BPS, Ministry of Agriculture (2010) ***ApIndo 2011 ****Ill August 2012 (AGRI)
However, Indonesia sMll requires import
Source: BKF, Bappenas, BPS *s/d semester I , 2012 Pidato Presiden 16 August 2012) ** Feb 2012 *** Mar 2012 ****Bank Indonesia , August 2012
The Key Strength Indonesia
2007 2008 2009 2010 2011 2012 2013* GDP gowth (y-‐o-‐y, %) 6.3 6 4.5 6.1 6.5 6.4* 6.8 Nominal GDP (current prices (Rp trillions)
3,951 4,949 5,604 6,423 7,226 8,119.8* 8,119.80
GDP per capita (current prices, US$)
1,921.70 2,244.60 2,349.80 3,010.10 3,542.90 3,906
PopulaMon (mill) 225.6 228.5 231.4 237.6 243.7 249
Open unemployment rate (%) 9.8 8.6 7.9 7.6 7 6.3** 5.8 -‐ 6.1
The poor populaMon (%) 16.58 15.42 14.15 13.33 12.49 11.96*** 9.5 -‐ 10.5
InflaMon rate (%, year end) 6.6 11.2 2.8 7 3.79 4.56* 4.9
BI rate (%, year end) 8 9.25 6.5 6.5 6 (Dec 2011) 5.75 6.5
Fiscal balance (% of GDP) -‐1.3 -‐0.1 -‐1.6 -‐1 -‐1.2 -‐2.23 -‐1.6
Public debt (% of GDP) 35.2 33 29.5 28.3 26.4 25
Currrency (Rp/US$, average) 9,163 9,756 10,356 9,080 8,715 9,241* 9,300
Reserves (US$ billions) 56.9 52.1 66.1 96.2 111 101.7**** 106.56
S&P's RaMng BB-‐ BB-‐ BB-‐ BB BB+ BB+ FITCH RaMng BBB-‐ BBB-‐ Moody’s Investor Service (Jan 2012)
Baa3 Baa3
Agro-‐industry accounted 44.7% of GDP non-‐oil industrial sector, and 34.6% of which was contributed by the Food industry
Source : BPS, 2011, diolah Kemenperin
Food Industry 34.6%
Category % Output % # of establishment
Big & Medium 86,79 0.52 Small 5,69 5,71 Home Industry 7,52 93,77
Source : BPS, Sensus 2008
Year RP (Trillions) 2007 402 2008 526,6 2009 586 2010 602 2011* 658
*growth 9.19%
Food Industry Output is approaching 700 trillion rupiah with a growth of almost 10%. Number of Food Industry is dominated
by SMEs, but their role is less than 15%. Need a cooperaMon to enhance the role of SMEs
Growth of Manufacturing Industries Non-‐Oil/Gas in 2011
Source: BPS , calculated by Kemenperin
Industry 2006 2007 2008 2009 2010 RealizaMon 2011 Target 2012
Non Oil Industry 5.27 5.15 4.05 2.56 5.12 6.83 7.1 F&B + tobacco 7.21 5.05 2.34 2,56 5.12 9.19 7.5 -‐ 8 Predicted to absorb about 3,514,121 workforce in 2012 *Semester 1 , 2012 growth 7.03%
10
F&B Q2-‐2012: investment in the food industry in the Top 5 , both in DDI and FDI
Investment 2010 2011 2012 Q1 2012 Q2 PMDN (Rp. 000.000.000) 16,405 7,941 1,361 1,764 PMA (USD millions) 1,026 1,105 385 521
Source: BKPM
2010 2011 Q1 2012
Q2 2012
UNI EROPA / European Union
2,776.
5
2,675.
3
690.1
662.4
% investment EU of FDI in Indonesia
17.1
13.7
12.0
10.6
INVESTMENT EU through FDI in INDONESIA is too small compare to the potenMal , at around 10+ % in 2012.
SMll need a closer cooperaMon to increase EU investment in Indonesia
In millions USD
Source: BKPM
Some of them are: 1. France: Groupe Danone (food-‐products mulInaIonal corporaIon), Mane
(flavour) 2. Ireland: Kerry Group (internaIonal supplier of food ingredients and
flavour) 3. Italy: Perfen Van Melle (confecIonery manufacturer) 4. Netherlands: Unilever (mulInaIonal consumer goods company), Friesland
Campina (Dutch dairy cooperaIve), Kievit (food ingredients), DSM (mulInaIonal life sciences and materials sciences-‐based company, his global end markets include food and dietary supplements, personal care, feed, pharmaceuIcals, medical devices, automoIve, paints, electrical and electronics, life protecIon, alternaIve energy and bio-‐based materials.)
5. Sweden: Tetra Pak (mulInaIonal food packaging and processing company) 6. United Kingdom: AB Food (food & beverage product) 7. Germany: BASF (Food ingredients) 8. Denmark : DuPont Danisco A/S (is a Danish bio-‐based company with
acIviIes in food producIon, enzymes and other bioproduct) 9. Switzerland : Firmenich (flavour)
Which European Food and related Food companies are there in Indonesia?
THE CHALLENGES OF FOOD TRADE BETWEEN EU -‐ INDONESIA
Source: Ministry of Trade
Balanced Trade of Semi processed & Processed Food Indonesia – EU
Trade Value (US$)
2007 2008 2009 2010 2011 2012*
TOTAL Export 2,693,855,420 3,703,995,947 3,734,511,479 4,463,095,009 4,995,264,754 2,928,828,270
TOTAL Import 3,089,800,488 3,505,512,658 3,473,702,850 4,534,876,922 5,903,680,784 3,547,084,258
Balanced (395,945,068) 198,483,289 260,808,629 (71,781,913) (908,416,030) (618,255,988)
%
Export to EU 440,823,903 614,807,572 501,641,087 553,066,087 749,808,590 264,484,725 9.03
Import from EU 159,963,866 221,327,184 215,464,675 242,301,625 206,665,536 92,065,977 2.60
Balanced 280,860,037 393,480,388 286,176,412 310,764,462 543,143,054 172,418,748
*July 2012
Trade between the two regions for food products is sIll relaIvely small, even though actually has a huge potenIal, both in populaIon and GDP factor
15
Indonesian PopulaMon is around half of EU. GDP of EU is around 25% of World GDP, but Indonesia is only 1.2%.
• Source: Wikipedia • *esImated in 2012 by Wikipedia from mulI sources .**IMF • World PopulaIon Clock by 4 September 2012 is 7,064 millions populaMon
Rank Country PopulaMon Date Source % GDP** Date World 7,035,000,000 2012* 100 69,983,453 2011 4 Indonesia 237,641,326 1-‐May-‐10 2010 census 3.38 846,832 2011 European Union 494,994,742 17,549,214 2011 16 Germany 81,859,000 30-‐Nov-‐11 Monthly official esImate 1.16% 21 France 65,350,000 1-‐Jan-‐12 Official esImate 0.93% 22 United Kingdom 62,262,000 1-‐Jul-‐10 Official esImate 0.89% 23 Italy 60,820,787 31-‐Dec-‐11 Official esImate 0.86% 28 Spain 46,163,116 1-‐Jul-‐12 Monthly official esImate 0.66% 33 Poland 38,501,000 31-‐Mar-‐11 2011 census 0.55% 59 Romania 19,042,936 20-‐Oct-‐11 2011 census 0.27% 61 Netherlands 16,738,836 31-‐May-‐12 Monthly official esImate 0.24% 75 Belgium 10,951,266 1-‐Jan-‐11 Official esImate 0.16% 76 Greece 10,787,690 24-‐May-‐11 2011 census 0.15% 79 Portugal 10,561,614 21-‐Mar-‐11 2011 census 0.15% 80 Czech Republic 10,504,203 31-‐Dec-‐11 Official esImate 0.15% 84 Hungary 9,962,000 1-‐Jan-‐12 Official esImate 0.14% 86 Sweden 9,507,324 31-‐May-‐12 Monthly official esImate 0.14% 92 Austria 8,452,835 1-‐Jul-‐12 Official esImate 0.12% 99 Bulgaria 7,364,570 1-‐Feb-‐11 2011 census 0.10% 111 Denmark 5,584,758 1-‐Apr-‐12 Monthly official esImate 0.08% 114 Slovakia 5,445,324 30-‐Sep-‐11 Official esImate 0.08% 115 Finland 5,414,310 16-‐Aug-‐12 Official populaIon clock 0.08% 119 Ireland 4,588,252 10-‐Apr-‐11 2011 census 0.07% 137 Lithuania 3,187,700 1-‐May-‐12 Monthly official esImate 0.05% 144 Latvia 2,070,371 1-‐Mar-‐11 2011 census 0.03% 153 Estonia 1,294,236 31-‐Mar-‐12 2011 census 0.02% 161 Cyprus[ 838,897 1-‐Oct-‐11 2011 census 0.01% 171 Luxembourg 511,800 31-‐Dec-‐10 Official esImate 0.01% 175 Malta 417,617 31-‐Dec-‐10 Official esImate 0.01%
1. LiberalizaIon Tariff is on going , but Tariff is sIll not balanced & someImes unfair
2. Food RegulaIon is more stringent & Non-‐Tariff Measure increased. ProtecIon & compeIIon through the applicaIon of Non-‐Tariff Measure
3. Price of food material sIll in high level and trend to increase (Era “cheap price” is over) and related to climate change
4. Financial Crisis is sIll the World’s concerned, especially EU financial crisis 5. Consumers are increasingly concerned about food safety, healthy, Halal, etc 6. Interconnected and easier to access informaIon 7. Misleading informaIon, Chemical phobia are sIll ongoing. Back to nature
movement is a trend in Developed Countries 8. Technology developments will be double-‐edged . Can support innovaIon
and compeIIveness of new products . Instead, advances in technology will drive the Country to use it as a Non-‐Tariff Measure (for example, the more stringent checks by the innovaIon of technology of residue analysis )
9. New from APEC 2012 (21 Countries) : Linking eco-‐friendly products with max 5% Tariff (import duty), while 54 received as eco-‐friendly products.
There has been an evoluMon in the industry and food trade. Now the main concern such as:
Whether the European financial crisis can be overcome?
USA Debt reached USD 14.3 Trillions
Ability of the private sector
declined
ConsumpIon and investment
declined
Europe Debt crisis of
Greece, Ireland, Portugal , Spain ,
Italia
The threat of default by Greece
The slow of economic growth in Germany
ü ContribuIon of Indonesian food exports to the EU is relaIvely small, about 9% compared to total exports.
ü However, the impact of the financial crisis should remain wary. A domino effect can be happen to affect Indonesia
18
Average Tariff in Indonesia is more liberal than some of the G-‐20 members
• Average Tariff in Indonesia is 6.8%.
• Tariff barriers are sIll a lot going on, such as fruit and vegetable processed products that contain sugar or not to South Korea are sIll about 20-‐45%, to the South African around 20-‐35%, to Japan 10-‐24%, etc.
• In EU, tariff rates vary between 0 and 16.9% across individual products.
19
Common TBTs is faced by the Food Industry in global trade
Hidden TBTs
20
• Food Safety • Quality Standard • Healthy & FuncMonal Food • Back to Nature • Food AddiMves concern • Label • Hallal/ Khouzier • Convenience
Local & Global Trade
consideration
Even though
• Delicious
• High NutriMon
If Not Safe No Value
Challenges in Food safety & Quality
garbage
21
RegulaMon in INDONESIA related to F&B industry Ø UU No. 2/ 1966 : Hygiene Ø UU No. 2 /1981 : Metrology Ø Permenkes 722/Menkes/Per/88: Food AddiIves Ø UU No. 7 /1996 : Food Act à UU 18 October 2012 Ø UU No. 8 /1999 : Consumer ProtecIon Ø PP No. 69/1999 : Label and AdverIsement Ø PP No.102/2000 : NaIonal Standard Ø UU No. 18 /2002 : NaIonal System for Research Development & Science Technology Ø KepMenperindag No.753/MPP/Kep/11/2002: StandardizaIon & Monitoring SNI Ø Perda DKI No.8/2004: Food Safety Ø PP No. 28/2004 : Food Safety, Quality & NutriIon of Food Ø PP No. 68/2004 : Food Security Ø SK Ka. BPOM nomor 11/2004: General guidelines for food labeling Ø Permenperin RI 24/M-‐IND/PER/5/2006 : Supervision of ProducIon & Use of Hazardous Materials for the
Industry Ø SK Kepala Badan POM No. HK.00.05.52.4040, 2006 : Food Category Ø SK Kepala Badan POM No. HK. 00.05.52.6291 , 2007: NutriIon Label Reference Ø Peraturan Kepala BPOM HK.00.05.23.3541/2008 : Guidelines for food safety assessment of geneIcally modified
products Ø UU N0. 18/2009 : Livestock & Animal Health Ø Per Ka BPOM No. HK.00.06.1.52.4011 , 28Oct09 : DeterminaIon of Limit of Microbial and Chemical
ContaminaIon in Food Ø UU No. 36/2009 : Health Act Ø Permenperin 24/M-‐IND/Per/2/2010: Tare Codes Food and Recycling in PlasIc Packaging Ø Permenperin 75/M-‐IND/PER/7/2010: Guidance for GOOD MANUFACTURING PRACTICES Ø SE Ka. BPOM HK.05.01.1.52.09.10.8502 : ApplicaIon of Food Labels Ø Peraturan Ka BPOM HK.03.1.5.12.11.09955, 2011: RegistraIon Processed Food Ø Permenkes 033/2012: Food AddiIves Ø Peraturan Kepala BPOM No HK.03.1.5.12.11.09955 year 2011, pasal 14 PP No. 28 year 2004, Peraturan
Pemerintah No. 21 year 2005, : related to GMO Ø Other regulaIon from Ministry of Trade, Ministry of Agriculture, Ministry of Marine & Fisheries, etc
1. Mandatory RegistraMon /Pre Market EvaluaMon A. BPOM : Ø No MD : Local Food Product Ø No ML : Imported Food Product
B. Department of Health (Province/District) Ø No PIRT : Local Food Product produced by Smallholder Producers
2. Mandatory Label in Bahasa Indonesia (PP Label No 69/1999)
3. Post Market Monitoring A. BPOM (NaIonal level) & Balai POM (Province) B. Direktorat Pengawasan Barang Beredar (Ministry of Trade) C. Tim Terpadu Pengawasan Barang Beredar (Tim TPBB) Keputusan
Menteri Perdagangan Nomor: 780/M-‐DAG/KEP/10/2008.
4. HALLAL : Voluntary
ProtecMon for Consumers
1. Permendag 56/2008 , jo. No. 60/2008, jo. No. 23/2010 : Import through special port: Belawan ,Medan; Tanjung Priok ,Jakarta; Tanjung Emas ,Semarang; Tanjung Perak, Surabaya; Soekarno HaFa , Makassar; Dumai, Dumai; Jayapura and Internasional Airport. Extended by Permendag No.57/2010 (valid Ill 31 December 2012)
2. Permendag No.54/M-‐DAG/PER/10/2009 , 45/M-‐DAG/PER/9/2009, 17/M-‐DAG/PER/3/2010 (Import Permit :API, IT, IP, dll)
3. Permendag 27/M-‐Dag/Per/5/2012 , jo Permendag 59/M-‐Dag/Per/9/2012 (replacing Permendag 39/M-‐Dag/PER/10/2010) Terms of API (Import IdenIficaIon Number)
4. Permendag 30/M-‐Dag/Per/5/2012 , jo. Permendag 38/M-‐Dag/Per/6/2012, jo. Permendag. 60/M-‐Dag/Per/9/2012 : Import RegulaIon for HorIculture Product per 28 September 2012
5. Permentan No 88/Permentan/PP.340/12/2011: Food Safety Supervision Of Import and Export of Fresh Food from Plants à Port: Tanjung Perak, Surabaya; Belawan, Medan; Makassar; & Soekarno HaFa Airport à 19 Juni 2012
6. Permentan No 89/ Permentan/OT.140/12/2011 (revision of No 37/Kpts/Hk. 060/1/2006): Technical requirements and plant quaranIne measures for the importaIon of fruits and / or fresh vegetables to the territory of the Republic of Indonesia
7. Permentan No 90/ Permentan/OT.140/12/2011 (revision of No. 18/ Permentan/OT.140.2/2008) : Technical requirements and plant quaranIne measures for the importaIon of product such as vegetable & tuber , origin of life plant into the territory of the Republic of Indonesia
8. Permentan 03/Permentan/OT.140/1/2012 , jo 60/Permentan/OT.140//9/2012 : Import RecommendaIon for HorIculture Product per 28 September 2012
Import Control & Monitoring
1. Tariffs & Procedures • Import duIes are applied to specified goods imported into the EU in order to raise the
world market price to the EU target price. Duty rates vary between 0 and 16.9% across individual products.
• Import quotas restrict the amount of food imported into the EU. • IncompaIble Product ClassificaIon and lengthy RegistraIon Procedures • Case Cocoa Product to EU: Ø Tariff discriminaIon of Indonesian cocoa products to the EU by 7.7 -‐9.6%, where Africa
Countries get preferenIal tariff called “Cotonou Agreement UE-‐ACP“. Ø Although exisIng GSP facility for developing countries including Indonesia with a
reducIon rate of 3.5% of the MFN rate, it sIll makes Indonesia processed cocoa products less compeIIve in the EU market.
Ø While the 0% import duty on the contrary given on imported cocoa bean in the EU, it indicates that EU governments protect industry cocoa processing and further encourage domesIc industry to imporIng cocoa beans than processed so that the value added in the country.
Ø Info, Singapore will got 0% tariff in 2013 for all cocoa products, while Malaysia will get it in 2014.
2. Gap in the purchasing power
Challenges to EU market For Indonesian exporters shipping processed agri-‐food products to the EU markets, the following are the general and specific market access issues in agri-‐food products:
1. General Sanitary and Phytosanitary Measures, senng control standards over food and food product hygiene, animal health and welfare, plant health. It also provides rules on appropriate labeling for these foodstuffs and food products. This policy follows a so-‐called 'From the Farm to the Fork' approach that ensures a high level of safety for foodstuffs and food products at all stages of the producIon and distribuIon chainsà Food Safety Issues
2. Environmental RegulaIons: The principal components of the environmental legislaIon relaIng to the processed foods industry are (a) Integrated PolluIon PrevenIon and Control DirecIve; (b) DirecIve on Packaging and Packaging Waste; (c) Framework DirecIve on Waste; and (d) Climate Change known as the Emission Trading Scheme (ETS). The current ETS is compulsory for large food and drink companies, and is intended to reduce greenhouse gas (GHG) emissions caused by large installaIons at least cost. For example, Countries form European Palm Oil Council in aFempt to counter criIcism of industry's environmental record (2011)
3. Residue standards that the EU applies in tropical fruits and wooden packaging, which are in some cases extremely strict and prohibiIvely difficult to comply with for Indonesian companies. For example, European countries set the ferIlizer residue threshold at 0.1 percent
4. NGO acIviIes in Europe against environmental issues in some products are counterproducIve in that they lead to disrupIons in trade without offering realisIc soluIons. Examples include palm oil, cocoa and the traceability of eggs used in biscuits. Other example, France’s Group Casino has pledged to remove palm oil from all its own brand products, starIng with 200 by the end of this year(2010) , for environmental and health reasons, and use only cerIfied sustainable palm oil in non-‐food products.
Challenges to EU market
• White Paper on Food Safety 2000
• EC No. 178/2002 of the European Parliament and of the Council of 28 January 2002 laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in maFers of food safety.
• EC No. 882/2004 Official controls performed to ensure the verificaIon of compliance with feed and food law, animal health and animal welfare rules,
• EC No. 852/2004 Hygiene of Foodstuffs
• EC No.853/2004 Specific Hygiene Rules for on the hygiene of Foodstuffs
• EC No.854/2004 Specific rules for the organizaIon of official controls on products of animal origin intended for human consumpIon
• EC. No.2073/2005 Microbiological criteria for foodstuffs
• EC 1010/2009 Catch cerIficate
• RASFF Rapid Alert System for Food and Feed
• BRC
Food RegulaMon , Sanitary and Phyto Sanitary (SPS) to EU Countries
27
The number of noMficaMons is up trend (RASFF)
It can have two meanings, whether the case actually increased or more stringent examinaIon and evaluaIon? Most likely due to the development of inspecIon technologies, making it easier to detect
28
InspecMon technology is growing and more developed, the more stringent regulaMons. For example, is currently trend to zero
tolerance for residue
Source: RASFF Report 2011
Increase trade and investment between Indonesia and the European Union
CooperaMon
• OpImizing business & sources potenIal for mutual benefit
• Encourage the EU countries to increase investment in Indonesia , to explore Huge Natural Resources , combining with Advanced Technology owned by EU Countries to produce more VALUE ADDED PRODUCT, that is safe and fulfill the consumer’s preferences
• Enhance trade cooperaIon between countries due to F&B trade is too small compare to it’s potenIal à PromoIon & Open MARKET ACCESS ,especially for SMEs
• NegoIaIng tariffs to be more equally & fair • Undertake pilot project in exporIng fruits, veggies, and fisheries products (for example) to demonstrate the enIre producIon chain.
WHAT TO DO between INDONESIA -‐ EU
CooperaMon
• Harmonizing NTMs , without ignoring FOOD SAFETY Standard. Need more understanding and tolerance about standard & procedures, so that Indonesia could comply to the EU regulaIon à Road Map for hamonizaIon of rules and policies
• Need to build MRA to reduce Trade Barriers, especially in CerIficaIon & AnalyIcal Procedures
• Exchange informaIon more clear, frequently on the regulaIon of each country. Intensify the consultaIon between goverment and private sectors
• Economic Partnership to minimize constraint of social status differences/gap, especially for SMEs in the Country
• Capacity Building & Technical Assistance for Indonesia F&B Industry, especially SMEs, to comply EU Food RegulaIon, Hygienic & Market Access Procedure
31
NEED CLOSER COOPERATION INDONESIA – EU
WHAT TO DO between INDONESIA -‐ EU