According to data from the Indonesian Food and Beverage Producers Association (GAPMMI), food and beverage imports from the neighboring country accounted for 23.08 percent of the overall food and beverage imports in the five months through May reaching US$89.56 million.
"Unless the competitiveness of local products is improved optimally Malaysian products will increasingly control the domestic market," GAPMMI Secretary General Franky Sibarani said on Tuesday.
Meanwhile, Director General of Foreign Trade at the Trade Ministry Deddy Saleh said the increase in food and beverage imports from Malaysia must be viewed comprehensively by comparing it with the increase in Indonesia`s export of similar products to the neighboring country and other nations.
"We must compare the imports with our exports to Malaysia and other countries," he said.
He said the increase occurred apparently because Malaysian food and beverage which previously entered Indonesia illegally were shipped legally in the first five months of 2011.
"It is likely the increase was caused by the large quantities of goods which previously entered Indonesia illegally are currently imported illegally because the goods are no longer subject to import duties," he said.
In addition, Malaysia`s food and beverage imports from other countries including Singapore and the Philippines were also on the increase, he said. (*)
Editor: Aditia Maruli Radja
Copyright © ANTARA 2011
