Indonesia reenters sugar market

JAKARTA (JP): The State Logistics Agency (Bulog) said yesterday that it bought 106,000 metric tons of white sugar, 175,000 tons of high polarization raw sugar and 235,000 tons of raw sugar in its second tender Wednesday.

Bulog spokesman Masjkur Sulaiman said that the shipments to Indonesia are expected between August and October.

He said commodity trading houses Kerry Group PLc and ED&F Man, won the tender to sell white sugar at between $265.88 and $269.45 a ton. Louis Dreyfus, Glencore International, Sucden and ED&F Man will sell the high polarization raw sugar at $226.48 to $248.60 per ton.

Kerry Group, Sucden and Bahtera Graha Prima Nusa also won the tender to sell raw sugar at between $223.48 to $245.00, he said.

Bulog bought 30,000 tons of raw and 202,000 tons of white in the first sugar tender the agency organized in late July.

Masjkur said that Bulog decided to buy high polarization raw sugar "because its quality is better than raw sugar and not highly different than white, but much less expensive than the white."

Masjkur declined to reveal when the next round of tenders for sugar or other commodities would be, but Bulog chairman Beddu Amang said separately yesterday that Bulog might hold a tender to buy 100,000 to 200,000 tons of white sugar next month.

Beddu said that he hoped the private sector would be able to procure 300,000 to 400,000 tons of imports while Bulog planned to buy between 900,000 and 1 million tons of sugar, half of which would be raw sugar.

Indonesia's total sugar demand for fiscal 1998/1999 is estimated at 3.1 million tons. Of the total, about 1.8 million tons are expected to be produced locally and 1.3 million imported. (gis)