Sugar cane farmers demand removal of sugar reference selling price (HAP), citing challenges

JAKARTA — Indonesian Sugar Cane Farmers Association (APTRI) has called on the government to abolish the Reference Selling Price (HAP) for both producer and consumer levels of consumable sugar.

APTRI Chairman Soemitro Samadikoen said the implementation of the consumer-level HAP hinders farmers’ ability to set auction prices. His remarks were made at the opening of APTRI’s National Working Meeting in Central Jakarta on Monday, 25 May 2026.

“The Reference Selling Price at the consumer level restricts the movement of sugar auctions at the farmer level,” Soemitro said.

Soemitro said the association would meet with Coordinating Minister for Food Affairs Zulkifli Hasan (Zulhas) today. APTRI has submitted a written request for the government to raise the production cost price (HPP) for farmers from Rp14,500 to Rp16,875 per kilogram.

The association seeks the HPP increase to ensure the sustainability of sugar cane farmers, who have struggled due to rising production costs. “We have formally proposed Rp16,875,” he said.

Soemitro stressed that sugar cane farmers aim to sell sugar at the producer level for Rp18,000. To achieve this, he said, the HAP regulations at both producer and consumer levels must be abolished.

Based on APTRI’s experience, auction prices for sugar consistently exceed the HAP. “Rp18,000 is our actual selling price at the farmer level,” Soemitro said.

Farmers presented a graph showing sugar auction prices from 2006 to 2025. Before the government implemented HAP in 2016, sugar auction prices were consistently above the HPP, except for a single instance in 2014. However, since the HAP policy was introduced, farmers have struggled to maintain auction prices.

Furthermore, the rate of increase in the Reference Selling Price (HAP) has been slow and does not reflect market dynamics or rising production costs. Since 2024, the sugar HPP has remained stagnant at Rp14,500 per kilogram.

“If the HPP were set at Rp7,000, auction prices could range from Rp8,000 to Rp10,000 — that’s acceptable as long as there’s flexibility. Prices can fall, and we can adjust later,” Soemitro said.

To control sugar prices, Soemitro said the government could intervene through market operations. The association stressed that the government should maintain a strategic reserve of 5 to 10% of the national sugar supply. The government should instruct state-owned food enterprises to conduct market operations. “The government only needs to hold 5% of this, around 200,000 to 300,000 tonnes, which would cost approximately Rp5-6 trillion — a small amount for the government,” he said.