Association calls for audit of cocoa industry

Tue, 03/27/2012 - 10:16

The Indonesian Cocoa Association (Askindo) urged the government to launch an audit into the country’s cocoa processing industry to see whether the industry has truly developed as expected following the implementation of the export tax on cocoa beans.

Askindo Chairman Zulhefi Sikumbang said in a press release that it is high time to launch an audit as the government has implemented the export tax policy for two years now. 

But according to his observation, the export tax policy has failed to achieve the desired goals as cocoa processing companies which were financially troubled before the export tax policy was launched have now either completely collapsed or near bankruptcy.  On the other hand, big and well-financed companies have continued to thrive benefiting from the cheaper cocoa beans raw material in the wake of the export tax policy.

Zulhefi said that as the export tax policy has failed to achieve the desire goals of among others revitalizing the ailing cocoa processing industry, the policy must either be abandoned or revised.  He added that export tax has only created burden to the farmers as exporters shifted the cost to them. (rei)

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