RI to increase sugar import quota next year

RI to increase sugar import quota next year

Zakki P. Hakim, The Jakarta Post, Jakarta

The government will raise the country's sugar import quota to
500,000 tons next year from 400,000 tons in anticipation of
rising demand, as the economy is expected to grow at a faster
rate.

Ministry of Trade's director of imports, Aang Kanaan Kusumah,
said on Thursday that the decision was made by the National Sugar
Council.

The council is chaired by the Minister of Agriculture, with
members comprising representatives from the ministries of
finance, trade, and industry, the Indonesian Chamber of Commerce
and Industry (Kadin), as well as grower and industry
associations.

"However, we agreed to divide it (the import) into stages.
During the first stage, importers may only supply a total of
300,000 tons into the domestic market," Aang told reporters,
following a hearing between his ministry and the House of
Representatives Commission VI for trade, industry and state-owned
enterprises.

He explained that sugar imports could be stopped even before
reaching the quota if local production is deemed sufficient to
meet demand, based on assessments conducted by the Ministry of
Agriculture, in order to protect the interests of local sugar
growers.

Although this year's import quota was set at 400,000 tons, the
amount actually imported was only about 200,000 tons, he said.

Aang said that the ministry had yet to decide which companies
would be given the license to carry out the sugar imports.

Based on existing regulations, only five companies are allowed
to import sugar. The limitation was implemented in order to
protect local sugar growers from the massive inflow of cheaper
imported sugar.