Govt raises import duty on sugar<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The government has increased the import duty on raw sugar and
\nwhite sugar to help protect local sugarcane farmers from cheaper
\nimports.<\/p>\n
According to a finance ministry decree signed on July 3, the
\nnew import duty for raw sugar and sugarcane is now set at Rp 550
\nper kilogram.<\/p>\n
The decree raised the import duty on white sugar and double
\nrefined sugar to Rp 700 per kg.<\/p>\n
The duty for raw sugar and white sugar were previously set at
\n20 percent and 25 percent, respectively, which in rupiah terms
\nwas equal to Rp 405 per kg for raw sugar and Rp 534 per kg for
\nwhite sugar.<\/p>\n
The decree said that the new import duty would be effective
\nfor two years from July 3.<\/p>\n
Sugarcane farmers had been demanding the government raise the
\nimport duty on sugar products amid massive inflows of cheaper
\nimported products.<\/p>\n
Minister of Agriculture Bungaran Saragih supported the
\ndemands, but Minister of Trade and Industry Rini MS Soewandi
\nopposed it on grounds that the higher tariff would make sugar
\nprices at home higher, which in turn would create burden to end
\nusers: food and beverage processors and households.<\/p>\n
Farmers groups had initially demanded a much higher import
\nduty.<\/p>\n
But the finance ministry decree said that the higher duty was
\nalso meant not to create too much of a burden on sugar consumers.<\/p>\n
Indonesia is among of the world's top sugar importers,
\nimporting around 2.1 million tons of sugar in 1999 and 1.2
\nmillion tons in 2000, mainly from Thailand.<\/p>\n
The country also has the lowest import duty on the commodity.
\nThe European countries impose a 240 percent import duty on the
\ncommodity, and the United States 150 percent. Neighboring
\ncountries, Thailand and the Philippines, impose an import duty of
\n95 percent to 100 percent.<\/p>\n
The government is also planning measures to boost local sugar
\noutput.<\/p>\n
Bungaran had earlier said that his office would initiate
\nmeasures to boost the productivity of local sugarcane farmers so
\nthat output this year could increase to 1.9 million tons,
\ncompared with 1.7 million tons last year.<\/p>\n
It is projected that sugar output in 2007 could jump to 3
\nmillion tons, equal to the current domestic consumption level.<\/p>\n
Part of the productivity-boosting plan, Bungaran said, was to
\nintroduce high-quality seeds to local farmers.<\/p>\n
The agriculture ministry is also planning to rehabilitate some
\n70,000 hectares of sugarcane plantation every year and replant
\nwith premier sugarcane seeds so they could produce a higher
\nyield.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-raises-import-duty-on-sugar-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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