Incentives For The Development

Incentives For The Development Of The Extraction Industry Is Expected To Come True

Incentives For The Development – Jakarta, – Companies engaged in the field of cosmetic PT Mustika Ratu Tbk (MRAT) expects incentive from the government for the development of industrial extraction and material supporters of the cosmetic industry on the upstream side. Investment and incentives are judged to be effective to suppress the import of raw materials.

President Director of PT Mustika Ratu Tbk Bingar Egidius Situmorang revealed the import which occurred in the cosmetic industry was triggered by the lack of domestic companies that invest in the industrial extraction. In addition, the absence of incentives from the government also encourages the high imports of raw materials.

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According to the Egi, businesses think, that with import, fulfillment of the raw material needs to be easier than relying on local raw materials.

Meanwhile, the supply of domestic raw materials also can not be optimal due to the lack of incentives and guidance from the government to farmers.

“That’s some of the obstacles in maximizing the potential of Indonesia’s nature, so many companies that take shortcuts with importing material that is so. Due to industrial extraction of this necessary skill. So, if his skill is not much, and its products are sold expensive, later could not compete with imported products,” said Egi during a Media Visit at the Office Berita Satu Media Holdings, on Tuesday (25/1/2022).

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Therefore, Egi looked, investment and incentives in the extraction industry must become a national movement. This step is expected to reduce the influx of imported raw materials.

Recognized Egi, at this time there are already companies that began to develop industrial extraction. However, the movement needs to be enlarged again. Including, cooperating with state-owned enterprises to collaborate together.

“We should work together because it is impossible if you only rely on one or two companies. But it must be the same for the sake of the interests of the state to convert the raw material fresh from the plants in the plantation, then processed into an extract and mixed with other raw materials,” he explained.

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As for Mustika Ratu, it has been using almost all the raw materials of production locally. Moreover, the herbal Component Level In the Country (DCL) reached 100%.

Ironically, the drug industry in the country still relies on 90% of the raw materials of import. “It’s sad, and we just realized this during a pandemic. Indonesia is the country’s biodiversity, but raw material medicine should be imported. In fact, 70% of the raw material for medicine is in Indonesia,” said Egi.

The industry ecosystem extraction needs to be built from upstream to downstream, as well as the incentive to entrepreneurs willing to invest in this sector. So, will occur strategic cooperation between the industry and farmers to do the coaching.

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It is important to be encouraged because it will have a positive impact on the ecosystem of the economy nationwide. Other impacts not only for industry, but increase the interest of the farmers to then plant the raw materials needed for industrial products, such as ginger, turmeric, bitter, and others. “Hopefully, the farmers can also be farmed with the result that its value is much higher,” he closed.

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