{
    "success": true,
    "data": {
        "id": 1701267,
        "msgid": "academics-re-examine-soe-plan-to-control-refined-sugar-imports-1777182690",
        "date": "2026-04-26 11:00:00",
        "title": "Academics Re-examine SOE Plan to Control Refined Sugar Imports",
        "author": "Aprillia Ika",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Regulation",
        "summary": "A professor from IPB University has urged the government to thoroughly assess its plan to shift refined sugar raw material imports from private industry to state-owned enterprises (SOEs), warning that it could lead to government monopoly and reduced efficiency. Hermanto Siregar emphasised that such a policy should only proceed if SOEs can import more efficiently than private entities, while highlighting that the core issues in Indonesia's sugar industry lie in inefficient production structures at both upstream and downstream levels. He advocates for healthy competition over monopoly practices to enhance productivity, particularly through improved sugarcane cultivation technologies.",
        "content": "<p>JAKARTA, KOMPAS.com - The government\u2019s plan to shift imports of\nrefined sugar raw materials from the private industry to state-owned\nenterprises (SOEs) has been urged for deeper examination. The plan is\nseen as potentially creating monopolistic practices.<\/p>\n<p>Professor at the Faculty of Economics and Management, IPB University,\nHermanto Siregar, stated that economic activities must be based on\nprinciples of productivity and efficiency. This means that every policy,\nincluding imports of refined sugar raw materials, should be directed\ntowards producing lower costs with optimal output.<\/p>\n<p>In this context, shifting imports of refined sugar raw materials to\nSOEs is not an issue, as long as the companies can carry out the import\nprocess more efficiently than the private sector.<\/p>\n<p>\u201cIf indeed SOEs are capable of carrying out the production process in\nthis case refined sugar, yes imports, more efficiently than the private\nsector, then go ahead. But what is very important is the study,\u201d said\nHermanto Siregar to Kompas.com on Saturday (25\/4\/2026).<\/p>\n<p>\u201cSo study it first, will the implementation of imports by SOEs\nactually be more efficient or not compared to the current one?\u201d he\nexplained.<\/p>\n<p>He noted that the policy of making SOEs the sole importers of refined\nsugar raw materials would, from an economic perspective, be categorised\nas a government monopoly.<\/p>\n<p>\u201cIs it, for example, the only import option basically by SOEs? What\ndoes that mean? In economics, that means monopoly, yes, government\nmonopoly,\u201d Hermanto explained.<\/p>\n<p>This is because in a monopoly situation, there is only one player\ncontrolling the market, so competitive pressure becomes very minimal.\nWhen there are no competitors, the incentive to improve efficiency,\nreduce production costs, or enhance product or service quality tends to\nweaken.<\/p>\n<p>\u201cAccording to theory, we are academics, yes, according to theory,\nmonopoly is not good in terms of efficiency and so on compared to\nhealthy competition. Healthy competition,\u201d he continued.<\/p>\n<p>He stressed that the main problem in the national sugar industry is\nnot solely the import scheme, but the inefficient production structure,\nboth in the upstream and downstream sectors.<\/p>\n<p>On the upstream side, sugarcane plantation productivity remains the\nmain challenge. According to Hermanto, productivity improvements must be\ncarried out through the application of cultivation technology, including\nthe use of superior seeds that can increase harvest yields.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/academics-re-examine-soe-plan-to-control-refined-sugar-imports-1777182690",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}