The Indonesian Government has revoked over 40 horticulture import permits, according to media reports.
The crackdown, led by the Indonesian Trade Ministry, is the result of a new regulation aimed at making the Indonesian import sector more transparent.
The trade ministry’s director for foreign trade, Bachrul Chairi, told the Jakarta Post the permits were revoked after their holders failed to comply with the new regulation’s eligibility requirements.
A number of the banned importers were unable to prove they had adequate facilities to preserve their products, while others did not have purchase contracts with at least three Indonesian distributors.
A further 90 importers are now having their operations verified after failing to fulfil similar requirements.
“We are giving until next Friday to provide clarification to the trade ministry,” Chairi told the Post.
“If they cannot meet the requirements on-time, we will also repeal their permits.'
Under the new regulation, importers must apply for permits via an online system, with approval granted within two days of lodgement, pending all conditions are met.
Citrus Australia’s market access manager, David Daniels, hopes the new system will prevent third party companies - with no intention of importing fruit and produce – from acquiring import permits and selling them off at inflated prices.
“This has been a growing trend for a number of years now and it has created a secondary trade which buys and sells in quotas,” Daniels told Asiafruit.
“It means traditional importers, which our industry deals with, have not been given quotas.
“Instead, they have to buy them at a hefty cost, which reduces returns all the way down the supply line.”
