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.