President Jokowi Orders Major Reforms In Domestic Salt Industry
Date 5 Oktober 2020
President Joko “Jokowi” Widodo has ordered his Cabinet to reform supply chain of domestically produced salt in a bid to accelerate the absorption in the market and in industries.
“The Government should start massive reforms in salt supply chain, starting from the upstream part to the downstream part,” President Jokowi said during a limited meeting on Acceleration of Domestic Salt Absorption in Jakarta, Monday (5/10).
Based on the report, President Jokowi said that low absorption of domestic salt by local manufacturers are caused by poor quality that does not meet the industrial standards and low production capacity.
“We must find the solution to overcome those problems,” he said.
The Head of State also pointed out that regarding quality, based on data he received as of 22 September 2020 there were still 738,000 tons of domestic salt which was not absorbed by industries.
“The Government should seek solutions so that the domestic salt can be absorbed by industries,” he added.
Regarding the low production capacity, the President added, the condition has forced the Government to import salt from other countries to compensate for the shortfall.
“The national salt demand in 2020 reaches 4 million tons per year while our national salt production reached only 2 million tons, leaving a shortage of supply of 2.9 million tons for industrial needs,” said the President.
Therefore, to address the issue, President Jokowi said he had ordered his Cabinet to pay attention to the availability of production land and to accelerate the integration and extension of domestic salt production in ten salt-producing provinces.
The President added he had also called for improvement in productivity and quality of domestic salt.
“The use of innovative production technology is expected to boost the salt production and quality,” the President said, adding that he has also ordered development of salt derivative industries in downstream industries. (FID/UN)
Translated by: Estu Widyamurti
Reviewed by: M. Ersan Pamungkas