New decrees on sugar seen as ineffective<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Newly issued presidential decrees on sugar are ineffective as
\nthey only address limited aspects of the real problem contained
\nin the trade regulations for the commodity, observers have noted.<\/p>\n
Bustanul Arifin of the Institute for Development of Economics
\nand Finance said that the two decrees had little, if any, effect
\non strengthening the country's sugar.<\/p>\n
\"The decrees are merely a temporary solution to the problem;
\nthey don't seem to have any teeth in trying to improve our sugar
\nindustry,\" said Bustanul during a seminar here on trade
\nregulations on agricultural commodities.<\/p>\n
On Monday, President Megawati Soekarnoputri issued
\nPresidential Decree No.57\/2004 on the inclusion of sugar in the
\nlist of supervised goods and Presidential Decree No.58\/2004 on
\ndealing with illegally imported sugar.<\/p>\n
The decrees state in essence that there will be more
\nrestrictions on the importation of sugar and that smuggled sugar
\nwill be seized by the state and auctioned off.<\/p>\n
The issuance of the two decrees came amid concern that current
\ntrade regulations on sugar are not comprehensive and contain
\nloopholes that leave open ways for smugglers to bring in cheaper
\nsugar from overseas.<\/p>\n
The concern followed the discovery of around 73,000 tons of
\nimported sugar that was later deemed to be illegal as its
\nimportation violated the regulations.<\/p>\n
Bustanul said that the thrust of current trade regulations
\nfavored the country's farmers, but their implementation benefited
\ncertain parties in the bureaucracy, as they received fees along
\nthe way.<\/p>\n
Director of the development study center at Bogor Institute of
\nAgriculture Bayu Krisnamurti concurred with Bustanul, adding that
\nthe decrees should have addressed more comprehensively the wider
\nsituation that prompted the smuggling of agricultural
\ncommodities.<\/p>\n
\"There need to be presidential decrees that stipulate and
\nregulate the restructuring of the industry ... the improvement of
\ndistribution as well as research and development on agricultural
\nproducts, including sugar,\" said Bayu.<\/p>\n
Bustanul was also skeptical about the government's plan to
\nauction off the 73,000 tons of illegal sugar next year, saying
\nthat the move was too risky.<\/p>\n
\"Who can guarantee that the illegal sugar won't enter the
\n(domestic) market before being auctioned off? Even the police say
\nthey can't prevent it. It's risky because if the sugar entered
\nthe market, it would severely endanger our farmers,\" he
\nexplained, suggesting that the government reexport the sugar
\ninstead.<\/p>\n
Meanwhile, President Megawati Soekarnoputri said during a
\nceremony attended by thousands of sugarcane farmers in Bantul,
\nYogyakarta that the new decrees were part of government efforts
\nto help boost productivity and achieve self-sufficiency in sugar
\nproduction in 2007.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/new-decrees-on-sugar-seen-as-ineffective-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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