Industrial Salt Self-Sufficiency Is Hampered

Industrial Salt Self-Sufficiency Is Hampered

JAKARTA, Kompas – The plan of Maritime and Fishery (KP) Ministry to achieve salt self-sufficiency in 2015 is still hampered by some issues such as salt farm extensification, weather, and trade system burdening salt farmers.

According to the data from KP Ministry, national salt need reaches 4.01 million tons per year. The number comprises 2.05 million tons industrial salt and 1.96 million tons consumption salt. Consumption salt self sufficiency has been achieved in 2012. However, industrial salt is mostly imported.

KP Ministry’s Maritime, Coastal Area, and Small Islands Director General, Sudirman Saad, in Jakarta on Wednesday (1/7), said the government’s target to achieve salt self-sufficiency in 2015 needs some innovations since it has several obstacles, for example farm land expansion.

His office has tried to expand PT Garam’s farm for 8,000 hectares (ha) in Kupang Bay and PT Cheetham Garam Indonesia’s farm for 1,000 ha. Land extensification is needed to add industrial salt production for 960,000 tons. However, land expansion plan is hampered since land acquisition is hampered by traditional land ownership. Another obstacle is weather uncertainty.

In 2015, the government targeted national salt production of 3.7 million tons from People’s Salt Business Empowerment (Pugar) program and PT Garam.

Sudirman added his office is boosting the implementation of geo-membrane technology and spinning filter to Pugar to make the production faster and have good quality. Pugar will be implemented in 20,000-ha land with IDR 300 billion budget or a 300-percent increase than in 2014 of IDR 100 billion. Geo-membrane technology implementation is targeted to boost production from 80 tons to 120 tons per ha so the total production will be 2.2 million tons.

Another obstacle for salt self-sufficiency is selling price. The government has implemented base price for Quality I industrial salt (having equal qualification with industrial salt) of IDR 750 per kilogram (kg) and Quality 2 of IDR 550 per kg. However, farmer’s salt price always drops during harvest period of IDR 400-500 per kg. Meanwhile, average industrial salt’s price reaches IDR 1,000 per kg.

KP Ministry’s Coastal People Empowerment and Business Development Director, Riyanto Basuki, said price drop mostly occurs during harvest period. It is sparked by limitied salt harvest period of 4-5 months to meet national salt need for a year. “To achieve salt self-sufficiency, price component is very important,” he said. (Kompas)