September 17, 2012


Russia targets wheat export possibilities to Indonesia



In line with the Indonesian government's policy to reduce its dependency on rice consumption, Russia is eyeing the possibilities of exporting wheat to Indonesia.


"I think about a very promising cooperation, as I know that the government of Indonesia is trying to reduce the dependence on rice consumption, so wheat, as one of the substitutes for rice consumption, is very important," said Russian ambassador to Indonesia Alexander Ivanov here Friday (Sep 14), in a special interview with ANTARA.


Ivanov noted that Indonesia has been importing wheat from countries like Turkey, Sri Lanka and Australia, and for the last few months a number of Russian companies have explored the possibilities of exporting wheat to Indonesia.


One of the Russian companies which are trying to establish contact in Indonesia to export wheat produced in Russia is Alti Meals. Alti is a region in Russia, Ivanov added.


"It is not a secret that some wheat exported by Turkey to Indonesia actually has a Russian origin, so it would be cheaper for Indonesian importers to purchase it directly from Russia," Ivanov noted.


When questioned about the policy that will be set up for wheat exports, Ivanov said that Russia does not have a special arrangement for an agreement on free trade with Indonesia.


In the meantime, Russia is closely watching the bilateral and multilateral creation of free trade zones in the Asia Pacific region.


"As you know, until recently Russia was not a member of the World Trade Organisation, but this year Russia became a full member of the organisation, which gives us the possibility to study establishing bilateral or multilateral free trade agreements, and this is a near-future goal.


Recently, the Indonesian government launched a one day no-rice programme to reduce its dependency on rice consumption, as a follow-up to food security issues in the nation.


The programme itself has remained controversial, as rice has been a staple food source for many years.

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