"The government in this case the State Enterprises Ministry, the Industry Ministry and the Marine Affairs and Fisheries Ministry decides to give a priority to PT Garam to support the national salt industry," State Enterprises Minister Mustafa Abubakar said at his office.
The plan to revitalize the national salt industry was to follow up President Susilo Bambang Yudhoyono`s instruction during a working visit in East Nusa Tenggara province last week, the minister said.
During the visit, the President called for the construction of a salt industry in the province to reduce the country`s dependence on imported salt.
PT Garam is now in dire need of Rp400 billion in funds to buy bulk salt from farmers as well as to carry out its function as a national stock supplier and salt price stabilizer.
The capital injection is expected to enable PT Garam to buy 40 percent of farmers` salt in salt production centers in Madura, West Java, Central Java and West Nusa Tenggara.
Indonesia`s salt consumption currently stands at 2.8 million tons per year while its salt output reaches 1.2 million tons. To meet salt needs the country now imports the commodity from Australia, India and China.
(T.R017/Uu.S012/H-YH)
Editor: Priyambodo RH
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