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Indonesia aims to allay transhipment fears

By Neil Merrett, 30-May-2007

Indonesia is to step up cooperation with its customs officials and foreign trade partners to prevent imported goods from being re-exported as the country's own products, news reports have said.

Finance minister Sri Mulyani pledged Tuesday to stamp out the process, known as transhipments, to prevent damage to the country's domestic exports, according to Antara, the national news agency.

Growing concerns from both governments and consumers over some Asian goods, particularly foods and beverages, are putting pressure on regional manufacturers to ensure the safety of their products.

In a bid to to alleviate concerns from Europe and the US over Indonesia's safety measures, Malyani announced that the government would be stepping up precautions to prevent transhipments originating from markets like China.

"The directorate general of customs and excise is continuously increasing its monitoring," she stated. "We have also coordinated with the trade ministry with regard to issuance of certificate of origin."

In recent weeks, concerns have grown over the safety of some Chinese ingredients used within both the food and beverage industry, after the banned substance melamine was found in Chinese wheat proteins used in some US pet food.

This has opened the floodgates for a raft of both genuine and fictitious health scares regarding produce from the country entering the wider food chain.

Though the Chinese government has shown itself to be actively reforming its own safety procedures, Mulyani is keen to distance Indonesian exports from the scandals.

"This is a serious problem in China and has become a sensitive issue now," she added.