PKB Criticism Of Tax Free Milk Import Policy: Don't Make It Difficult For The People!

JAKARTA - Member of Commission IV DPR RI from the PKB faction, Daniel Johan criticized the tax-free milk import policy which was considered unfair to domestic milk-producing farmers. He reminded the government to take pro-people policies and not make it difficult for the nation itself.

This was conveyed by Daniel following protests by dairy farmers who were disappointed with the policy of limiting quotas in the Milk Processing Industry (IPS).

"The policy must be pro-people, not to make it difficult. It is the turn to import tax-free, while our own people are taxed in various aspects," said Daniel Johan, Thursday, November 14.

Daniel also encouraged the Government to evaluate the rules for exemption from import duties and taxes in the context of importing imported milk. "The government must protect local breeders by ensuring that the policies implemented are fair and support the progress of the nation itself," he said.

Daniel said that the policy of limiting IPS in the aftermath of the increase in imported milk caused local milk absorption to decline dramatically. For example, daily milk production in Boyolali reaches 140,000 liters, but only 110,000 liters can be absorbed by the factory.

"This restriction not only harms farmers financially but also causes uncertainty in their efforts. Many farmers are forced to throw away milk because there is no place to sell it," said Daniel.

"The effect of bathing in milk to throwing away milk by farmers shows their high frustration with policies that are considered unfair and detrimental," added the legislator from the West Kalimantan I electoral district.

Over the past two weeks, IPS has been limiting the number of milk quotas from local products. This resulted in the number of local farmers being affected, such as the Mojosongo KUD having 4,200 members.

Of that number, only 1,700 members supply fresh milk and produce 161 tons per week. The milk is allocated to IPS Frisian Flag as much as 75 tons/week, Freshland 45 tons per week, and Diamond 30 tons/week. There are still about 5 tons left every week and must be wasted.

According to Daniel, this creates a situation where local products do not get priority in absorption by industry. The impact of this is the decline in the welfare of farmers because they lose a lot.

This policy has the potential to worsen the condition of local breeders and threaten the sustainability of their businesses. In the end, people's welfare has decreased," said Daniel.

The member of the Commission in the House of Representatives in charge of agriculture, livestock and food sectors asked the Government to tighten supervision and control of milk imports. Daniel said the move was important not to disturb local markets and protect local breeders from negative impacts.

The protest action of dairy farmers who throw milk into a slap for the government in making policies. The country's policy should empower the community itself, instead of prioritizing other countries when the people themselves are made difficult because of the existing rules," concluded Daniel.

As is known, dairy milk farmers in various regions launched protests by bathing in milk to throwing away dairy milk for free because the industry was accused of preferring to use imported milk.

Control from the Government is also considered lacking because the tap for milk imports is widely opened and there is no tax for milk from abroad. Exporters to Indonesia such as New Zealand and Australia take advantage of the free trade agreement (FTA) so that the price of imported milk is 5 percent cheaper than local milk.

Cow farmers feel aggrieved by the restriction policy from IPS which prefers to use imported milk. Whereas the Regulation of the Minister of Agriculture Number 33 of 2018 has stipulated an obligation for dairy processing companies to cooperate with community farmer cooperatives to absorb dairy cow milk.

However, the facts on the ground show that companies that have partnerships with local breeders do not reach 20 percent of the total number of dairy processing business actors.