"The raw materials imported from Australia included industrial salt and wheat," Airlangga Hartarto said after receiving Australian MPs in Jakarta Thursday.
Airlangga Hartarto, from Golkar Party faction was in the company of three Commission VI members Emil Abeng (Golkar) and Ferrari Romawi and Atte Sugandi both from the Democrat Party.
Airlangga said Indonesia has been partly importing Australian salt for industry because of the lack of domestic salt production.
The Australian imported salt, he said, is further processed into caustic soda for cosmetics and foodstuff.
On the occasion, he said, the Australian legislators also said that some Australian businessmen will be making an investment to build a salt industry in Nusa Tenggara Province (NTT).
Airlangga added that Indonesia has also been importing Australian wheat for use as raw material for instant noodle and biscuits.
"The processing from raw materials into half-done and finished products is favorable to Indonesian industry," he said.
He said if Indonesia imported Australian raw materials and then exported instant noodle and biscuits, it would give an added value for Indonesian industries.
The problem facing the Indonesian legislative assembly, he said, is the trade relations between Indonesia and China, as Indonesia is importing a great deal of raw materials, then processed in China and re-imported to Indonesia.
"This condition is not favorable to Indonesia," he said.
On the occasion, Airlangga also said that salt is of two kinds, industrial and consumption salt.
There is no problem with industrial salt, he said, as it gives an added value for Indonesian industries.
"But consumption salt, namely salt added with iodium, needs to be boosted for domestic production," he said.
He added that the salt industry has not been too favorable because the prices were too low.
He said the House (DPR) had encouraged the government to give state investment (PMN) to PT Garam and raise the price of salt, for the survival of the salt industry.
(SYS/H-NG/H-YH)
Editor: Suryanto
Copyright © ANTARA 2011
