Indonesian cacao producers seek tariff cut from China

The Indonesian Cacao Association (Askindo) has officially asked the government to lobby China to cut tariffs on Indonesian cacao beans and cacao products to close to zero percent.

"We sent our written request directly to the minister of trade about a month ago, but so far we have not received any response," Askindo Jakarta chairman Piter Jasman was quoted Monday by The Jakarta Post newspaper as saying.

Earlier, Askindo said Indonesia was unable to compete with Malaysia on the Chinese market.

Piter went on to say that China was a lucrative market, with demand reaching 50,000 tons last year to make products such as cocoa powder and butter.

"The demand grows 20 percent annually," he said.

Indonesia last year exported 94,058 tons of cacao products, slightly up from 2003's 92,770 tons.

Indonesia's total cacao beans exports last year reached 277,060 tons worth 370.24 million US dollars.