GATT benefits Indonesian sugar producers

GATT benefits Indonesian sugar producers

JAKARTA (JP): The recently signed General Agreement on Tariffs
and Trade (GATT), which will force European countries to end
protectionist policies for their sugar industries, will benefit
Indonesian sugar producers, a plantation executive said.

However, Indonesian sugar producers must prepare to improve
their competitiveness on the global market, the president of the
State Plantation Company (PTP) XXIV-XV, Bambang Prakoeswa, said
in a hearing with Commission IV of the House of Representatives
(DPR) here yesterday.

"As there will no longer be protectionism in European
countries, sugar prices will be higher after the implementation
of the new GATT principles," said Bambang, whose company operates
12 sugar factories, four public hospitals, two alcohol
manufacturers and two other supporting units in East Java.

He said Indonesian sugar producers could sell their products
abroad as total output is one percent more than the country's
demand.

Last year, Indonesia produced 2,483 tons of sugar, while its
consumption was 2,466 tons. This year's production is estimated
to reach 2,603 tons with consumption at 2,540 tons.

Bambang told the commission, which is in charge of
agricultural and forestry affairs, that his company will expand
the capacities of four of its sugar factories -- those in
Jatiroto, Semboro, Prajekan and Asembagus.

"We're in the process of conducting a feasibility study on the
expansion plan," he added.

Services

Legislator Sukandar Arun suggested that the plantation company
improve services to sugarcane farmers who are involved in its
business.

Farmers in East Java have reportedly complained about the
company's poor payment practices.

Bambang, whose wife, Arie, is a member of the commission,
acknowledged that only 66 percent of the sugar prices paid by
consumers go to farmers and factories, while the rest goes to the
state-run National Logistics Agency (Bulog), which monopolizes
sugar distribution.

He said his company currently holds total assets of Rp 488.5
billion, including the sugar factories, most of which were
established during the Dutch colonial period.(09)