Indonesia to import sugar, soybeans to meet needs

JAKARTA (JP): Minister of Food and Horticulture AM Saefuddin said yesterday the country would import 1.3 million metric tons of sugar and 0.7 million tons of soybeans this year to make up for shortages on the domestic market.

He said the domestic sugar output was estimated to fall 14.3 percent to 1.8 tons this year, much lower than demand expected to reach about 3.1 tons.

"The 1.3 ton sugar imports will include 0.4 tons for the industrial sector and 0.9 tons for the public's consumption," Saefuddin said at a hearing with House of Representatives' Commission III for agriculture, transmigration, forestry and food affairs.

The country would import 0.7 million tons of soybeans this year as domestic production would be about 1.47 million tons while demand might reach 2.17 million tons.

The government will import 0.3 million tons of soybeans from the United States this year, using the GSM-102 export credit guarantees provided by the country, and another 110,000 tons from China, he said.

Despite the imports, there would still be a deficit of about 290,000 tons. The government will maximize the country's soybean production to fill the shortages, the minister said.

Saefuddin also said the country's crude palm oil (CPO) output would reach 5.98 tons this year, as against the domestic CPO demand of 2.93 tons which is equal to 2.35 tons of cooking oil.

The minister warned that the cooking oil supply to the domestic market could still be disturbed because producers still preferred to export their products due to higher prices on the international market despite a 40 percent export tax.

CPO now sells for US$660 per ton free on board for exports, compared with the domestic price of less than Rp 3,500 per ton.

He said the government "will maintain the CPO export tax at between 35 percent and 40 percent" to stop the drives for export.

Saefuddin also said the country's rice output for this year was expected to drop by 2.15 percent to 31.2 million tons. This would force the country to conduct rice imports.

He did not specify the volume of the rice imports but the State Logistics Agency (Bulog) earlier it would reach 3.1 million tons.

The El Nino weather pattern which battered the country from the middle of last year until early this year has caused drought and failed rice harvests in many parts of the country.

Saefuddin said there was no concern about the supply of vegetables and fruits for the domestic market as the country's trade balance showed an average annual surplus of 36,800 tons for fruits and 82,700 tons for vegetables.

He noted that national fruit and vegetable consumption reached only 24.6 kilograms per capita a year in 1996, lower than the standard set by the Food Agricultural Organization, which is 60 kg per capita a year for fruits and 65.75 kg per capita a year for vegetables. (jsk)