Thu, 19 Sep 2002

From: Jawawa

The sugar saga

On Sept. 12, thousands of workers from 46 sugar mills in Java -- there are 60 sugar mills throughout the country -- held a protest against imported sugar. They demanded that the government revise its import duties on sugar, control sugar imports and take strict action against sugar smugglers.

Although the import duties on sugar have been raised, imported sugar is available in markets for Rp 2,400 to Rp 2,600 per kilogram, therefore making it necessary to sell domestic sugar in this price range. But with production costs ranging from between Rp 3,100 and Rp 3,200, the import duty policy does not cover the losses of sugar cane growers.

For many years now, there have been calls to restructure sugar mills in Java, most of which are inefficient. Even the Consultative Group on Indonesia requested in 2001 that the government restructure sugar mills in Java. Unfortunately, the government has done nothing in this regard.

The government's laxness in this matter reflects its indifference. They forget that the protesters, driven by the urge to survive, may resort to violence and cause damage that will require much money to put right.

The government must openly take sides in its sugar policy. It must take stricter action to stop the smuggling of any commodity. It must set high import duties on strategic commodities to protect domestic products.

Then the government must restructure sugar mills to ensure that they operate efficiently, especially now that we have been left behind in this respect by Thailand and Vietnam.

Unless this sugar matter is immediately and properly handled, it will cause the community even more disappointment with President Megawati Soekarnoputri's administration.

-- Kompas, Jakarta