Customs office clears Bulog's imported sugar to stabilize price

Adianto P. Simamora, The Jakarta Post, Jakarta

The Directorate General of Customs and Excise finally agreed on Tuesday to clear 36,000 tons of imported sugar from a Jakarta warehouse as the price of the commodity continued to rise on the local market.

Customs director general Eddy Abdurrahman said the decision was made after all administrative requirements for customs clearance had been met.

"Starting today (Tuesday), Bulog can distribute the (imported) sugar," Eddy told The Jakarta Post, referring to the state logistics agency, which holds a mandate to help stabilize the price of sugar here.

Sugar prices locally had increased from Rp 4,000 per kilogram to around Rp 6,000 per kg earlier this month, reports said.

Distributors said this was largely due to the lack of supply as Bulog could not get its imported sugar from the customs office.

Reports quoting customs officials said the sugar, imported from Thailand, was sealed by customs because the necessary documents to clear the imported goods had not been submitted properly.

The four state-owned plantation companies that imported the sugar had not been able to complete the documents because they lacked experience with the import clearance process, the reports said.

The reports did not say why Bulog, a controversial agency also responsible for importing and distributing rice, had not been able to facilitate.

Minister of Industry and Trade Rini M. Soewandi last year appointed the companies as the only sugar importers in the country to control imports to help prop up the sagging price of the commodity as part of efforts to help increase the income of local sugarcane farmers.

However, because the firms lacked experience in importing sugar, Bulog was also assigned to assist them in handling the administrative process, in addition to its price stabilization mandate.

Rini, on Tuesday, criticized the customs office for holding the imported sugar, which had increased the price of the commodity.

"I really don't understand the custom office's reasons for holding the sugar while the price of the commodity continues to rise," Rini told reporters as she visited the Dolog Jaya warehouse where the sugar was sealed.

During the visit, Rini ripped the customs office red seal.

"This is not a proper move, many regions are suffering from a lack of sugar," Rini said.

During the visit, Rini was accompanied by Bulog chairman Widjanarko Puspoyo.

Rini urged the agency to distribute the sugar to help stabilize the price of the commodity.

"We hope the price of sugar will return to the normal price of about Rp 4,000 per kilogram."

Meanwhile, Bulog said it had distributed about 60,000 million tons of sugar across the country.

The move, however, still failed to ensure adequate supplies at domestic markets.

In Cirebon, for example, the price of sugar remains at about Rp 5,400 per kilogram.

Indonesia is among the world's top sugar importers, importing about 1.6 million tons in 2001. The country produces a total of 1.7 million tons of sugar, with an annual consumption rate of 3.3 million tons.

Rini has allowed Bulog to import 100,000 tons of sugar this year.