JAKARTA, Sept 1 Asia Pulse - Industry and Trade Minister Rini M.S.Soewandi will seek to talk to Chinese counterpart Bo Xilai to request fora reduction in the import duty on Indonesian stearic acid to 10 per centfrom the current 16 per cent.
China has already reduced the import duty to 10 per cent on that commodityfrom Malaysia under an Asean Free Trade scheme.
Chairman of the Indonesian association of oleochemical producers (Apolin)Kris Hadisubroto said he was confident Rini, now on a visit to China, willsucceed in her attempt to persuade the Chinese.
The talks with Bo Xilai will determine the future of the country'soleochemical industry, Kris said.
Failure to win a reduction in import duty will be a big setback forIndonesia and many oleochemical factories will likely have to stopoperation as the domestic industry cannot compete with Malaysian productsin the Chinese market.
China is one of the largest consumers of crude palm oil and itsoleochemical derivatives.
Meanwhile, Malaysia is seeking a further cut in the import duty to 5 percent.