The sugar saga

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