Post-WTO Appeal Efforts

On 17 February, Indonesia officially declared sudali do appeal (appeal) against the decision of the Panel in the Dispute Settlement Body of the WTO.

WTO News- Departing from the lawsuit from the United States and New Zealand over the regulation of imported horticulture and livestock products that are considered to violate provisions in the WTO.

 

The appeal effort will cost and considerable energy. However, this should be viewedas a form of Government concern farmers. Despite the effect on the extension of the time for the Government to make adjustments to Regulation (buying time), it is actually not significant because it also is not too long. From U.S. lawsuits and NZ, expensive lesson gained is better coordination of policy makers and consistency in the drafting of the policy itself.

However, much more important is how forward the efforts of improving the competitiveness of national agricultural, which boils down to the welfare of farmers, not just the achievement target for production or food prices. It doesn’t matter whether Indonesia will win or lose in the appeal efforts.

The biggest challenge facing Indonesia is Indonesia‘s own uniqueness that sets it apart with the country’s other big agricultural producers.

 

All other countries generally only face the problem of intertemporal or seasonal variations. However, Indonesia as the island nation is also facing the problem of disparity of antarwilayah, both in production, prices or agricultural infrastructure. Great dealappear in addition to the scarcity of supplies in certain areas is the cost of logistics for the collection of the product, which will be taken to the areas of consumption.

 

The challenge becomes one of the causes of our agricultural products prices in the consumer market fluctuates and is higher than the price in the world market. The Government should have a road map, not just the tactical nature of the policy to address this issue. There are four keywords that should so the focus policy facing the free trade for agricultural products. Two related efforts improve the performance of agriculture in the country and two related trade policy.

 

First, look for any efforts to improve productivity. From the point of view of Economics, comparative advantage and competitive productivity can be improved by only, not with the zoom input subsidies. Start of provision of seed are more independent, application precisedfarming, pascapanen up to the increased efficiency of marketing. For example, when faced with the option of intensifying and ekstensfiikasi, we recommend that the Government focus more increase productivity while keeping the landagricultural land. It certainly wasn’t easy.

 

Second, searching and implemented the technology of processing and storage of agricultural products. Tactical efforts such as the purchase of agricultural products by the ‘ Government ‘ is okay, more as a form of caring. However, greater efforts to encourage the development of processed industry should be the focus. This should becoupled with consumer education for consuming the processed products. The culinary campaign with various alternative products are not fresh is needed. The largestwholesale market in Thailand every trader selling fresh and dried red chilli as great in number. This is indicative of technology implementation and consumption of processed products that are already well in that country.

 

Third, the Government must be more ingenious efforts in developing technical barriers or nontarif, to suppress the influx of imported products. Certainly a good infrastructure is needed to filter out products that can harm consumers or ecosystems in the country. The seriousness to conduct testing of product, whether against a dangerous element content, such as pesticides, bacteria, and others. It’s certainly not cheap.

 

Many other countries use the technical barriers so that reason still refused to exportagricultural product Indonesia. For example, Australia is still demanding a fumigation treatment when we want to export the mangosteen to it. Fourth, Indonesia shouldfurther enhance the efforts of the development of new export markets and new products in existing markets. Indonesia had behaved no matter in the U.S. lawsuit, certainly Indonesia will miss a very large share of exports because the U.S. is one of threemajor export destination of Indonesia.

 

To that end, Indonesia should not depend on the purpose of traditional markets only. The new export market opportunities or market opportunities for new products is still wide open. The durian fruit to China alone, asked for no less than two cargo flights per day. But never mind exports, durian is already occupying five of Indonesia‘s largest fruit imports value.

 

Whereas, from Aceh to Papua, durian technically feasible and economically the country cultivated, which has the largest durian-diversity in the world. Export of agricultural products that have been processed are also relatively fewer technical barriers. The success of PT Javara, for example, who have been exporting hundreds of processed product

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