Zulhas: I-UAE CEPA Cuts Hajj Food Supply To Saudi Arabia

Coordinating Minister for Food Affairs (Menko Pangan) Zulkifli Hasan (Zulhas) stated that the government is reviewing strategies for the use of the Indonesia United Arab Emirates (Indonesia-UAE CEPA) comprehensive partnership agreement to facilitate food supply for pilgrims and Umrah to Saudi Arabia.

According to him, this step is considered to be able to reduce trade barriers as well as reduce logistics costs because the CEPA scheme allows the delivery of Indonesian products to the UAE area without tax.

Zulhas said this strategy could be an initial bridge while Indonesia strengthened direct negotiations with Saudi Arabia regarding market access for ready-to-eat food products.

"With Saudi Arabia, the agreement has not been completed. We already have a CEPA with the United Arab Emirates. The UAE has been sent free, we don't have taxes from the UAE, then we will go there (Saudi Arabia)," said Zulhas as quoted by ANTARA, Wednesday, December 3.

However, there are several obstacles that must be faced, one of which is related to regulations and standards from the Saudi Arabian drug and food authorities.

Therefore, Zulhas asked the Indonesian Food and Drug Supervisory Agency (BPOM) to coordinate with Saudi Arabia to eliminate barriers to food trade.

"We have decided that our BPOM here should immediately communicate to eliminate obstacles to food trade. Are they ready to serve, is it fresh, how much is allowed, there are some that are not allowed," he also said.

Furthermore, the use of the UAE route is also considered to be able to contribute to the potential reduction in the cost of Hajj. According to him, food is one of the largest components in Hajj financing.

Zulhas also said that Indonesia has economic potential of IDR 60 trillion in the provision or supply of food for pilgrims and Umrah.

The government has formed a special working group (pokja) to handle various aspects related to the implementation of Hajj and Umrah.

He explained that so far the circulation of funds of Rp. 60 trillion for consumption needs for Hajj and Umrah pilgrims has only occurred abroad.

According to him, if Indonesia is able to take the opportunity to supply these foods, then the circulation of money can occur domestically and provide benefits for local business actors.

The government is preparing steps so that Indonesia can start supplying some of these needs, and gradually expand capacity according to the capabilities of the domestic food industry.