Denpasar – Advanced states provide higher subsidies for their agricultural products than the subsidies provided by the Indonesian government to its products so that Indonesia faces difficulties to exports its agricultural commodities, a minister said.
“The subsidy provided by Indonesia for its agricultural commodities is very small if compared with those provided for the same products in advanced states,” Finance Minister Sri Mulyani Indrawati said here on Sunday.
She said that with that fact one should not be worried if Indonesia continues to impose subsidies on its products because the subsidy in terms of state budget is always deliberated with members of the House of Representatives (DPR).
“So, the need to protect the people is already discussed with the lawmakers,” the minister said.
She said that Indonesian products were facing difficulties penetrating the global market because advanced nations provide high subsidies for their agricultural products.
In the mean time, various countries are also practicing protectionism in the face of the global financial crisis despite the fact that many countries have advised protectionism should be avoided.
“This is a heavy challenge in an effort to recover the world economy, particularly the world trade,” the minister added.
Mulyani said that through all countries have called for avoidances of protectionism because it could worsen the world economy, in reality so much depends on national sentiment, which tends to lean towards the protection of national interests.
“It is only reasonable for all countries to do that,” she added.
In the meantime, the World Trade Organization (WTO) has resumed talks on export subsidies.
Ministers and ministerial level representatives of agricultural produce exporting countries in the Cairns Group met in Bali on June 7-9, 2009 to discuss the stalled Doha Round of talks on free trade.

News by International Bali Post

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