Equityworld Futures, Jakarta government efficiency industry chain that strategic food commodity prices stable and steady supply.

This time, the government cut the level of production and distribution of sugar to make the retail price of the purchased communities stable and affordable.

Trade Minister Enggartiasto Lukita states, in meeting the needs of the national sugar,

it does not just cut the chain but also facilitate an agreement between a manufacturer and distributor of sugar.

This is done so that the highest retail prices of sugar in the community can be controlled at the level of USD 12,500.

 

Equityworld Futures | Minister of Trade of Indonesia import of sugar for Inadequate National Needs

“Currently, the national sugar requirement for the first half of 2017 is expected to reach 1.5 million tonnes.

However, of that number, only able to be provided by the national sugar industry as much as 700 thousand tons of sugar.

The sugar supply shortage will be covered with imports,” he said in the written statement in Jakarta, Tuesday (01/24/2017).

Enggar explained, policies to tap the sugar imported by the government in an effort to anticipate fluctuations in the price of sugar in the market.

The price of sugar could rise sharply if there is a shortage of supply in the market.

“Imports could become an instrument for the stabilization of the national sugar prices,” he said.

He admits, are common dilemma when domestic production is insufficient to meet national needs.

“That requires the import of sugar to stabilize the price. All done with the main orientation creating a stable sugar prices,” he said.

Meanwhile economic analysts Bustanul Arifin’s view, imports of sugar can not be avoided and must be done to meet national needs.

He even predicted the national sugar demand this year could rise as much as 5.5 million tons.

“This was not followed by the national sugar production only within the range of 2 million to 3 million tons per year,” he said.

 

Equityworld Futures | Minister of Trade of Indonesia import of sugar for Inadequate National Needs

Based on data from the Ministry of Commerce, the sugar production in 2016 amounted to 2.2 million tons of sugar.

That number could not cover the national demand last year that amounted to 3.2 million tonnes.

Conditions that lead to a deficit of sugar in the market as much as 1 million tons.

In anticipation of the volatility of the national sugar prices, government has taken a policy to tap sugar imports.

However, the sugar will be imported raw sugar as a raw material that will be processed directly by the national sugar industry.

Imports carried by directly involving the national sugar industry.

The move was made to shorten the distribution chain sugar imports for the right target and cost.

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