Indonesia’s New Farmer Empowerment and Protection Law Introduces New Trade Barriers
Report Highlights:
On July 9, 2013, Indonesia’s House of Representatives passed a new law aimed at empowering and protecting farmers. Certain provisions of this law could introduce new trade barriers, if implemented as written.
Policy:
Farmer Protection
Chapter IV mentions that Government of Indonesia (GOI) is obligated to provide protection for farmers, and one of the tools to achieving this protection is through maintaining profitable price of locallyproduced agricultural commodities (Article 25). Articles 26 to 31 in chapter IV list the measures GOI
can use to make price of local agriculture products profitable for the farmers. These measures could include: