Government to impose new sugar tariffs this week<\/p>\n
Dow Jones, Jakarta<\/p>\n
The government will likely impose new import tariffs on sugar
\nthis week, in a bid to help local sugar cane farmers, Minister of
\nFinance Boediono told Dow Jones Newswires Monday.<\/p>\n
Boediono didn't give details of the new tariff rates however,
\nsaying they haven't yet been finalized.<\/p>\n
A source working close to the team that sets the tariffs said
\nduties have been set at Rp 550-950 a kilogram.<\/p>\n
Indonesia's current import duty for raw sugar is 20 percent,
\nand 25 percent for white sugar. Based on recent purchases, this
\ntranslates to about Rp 405\/kg for raw sugar and around Rp 534\/kg
\nfor white.<\/p>\n
The source said the new tariff rate is based on a production
\ncost of Rp 3,200\/kg, an exchange rate of Rp 8,750 against the
\ndollar and current international sugar prices.<\/p>\n
As domestic sugar production lags consumption, Indonesia has
\nto import sugar to meet requirements. Around 1.5 million to 1.6
\nmillion tons of sugar is required annually to meet domestic
\ndemand from households and food and beverage industries,
\naccording to a report released by the U.S. Department of
\nAgriculture in April.<\/p>\n
In 2002\/03, Indonesia 's consumption is forecast at 3.5
\nmillion tons, almost 3 percent higher than in the previous year,
\nthe USDA said in the report.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-to-impose-new-sugar-tariffs-this-week-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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