Sugar prices likely to increase in Indonesia

Jakarta: The government of Indonesia is taking measures to strike a balance within the national sugar industry by adjusting the price of sugar for consumption while considering the cost of goods sold (COGS). Arief Prasetyo Adi, the Head of the National Food Agency (Bapanas), made this announcement in Jakarta on Friday, reported Antara News.

Over the past two months, the government has urged business entities and state-owned enterprises (SOEs) to procure sugar at a minimum price of Rp12, 500 per kilogram during the milling season. However, the situation has evolved, prompting a need for adjustments. Adi emphasized Bapanas’s commitment to ensuring that mills receive fair prices in alignment with economic developments.

The government’s current focus is on maintaining equilibrium within the national sugar ecosystem, which involves modifying production costs and coordinating the interests of consumers and businesses to achieve food sovereignty and prosperity for farmers, Adi stated.

The adjustment in COGS at the producer level aligns with Bapanas Regulation Number 17 of 2023. Consequently, the price of sugar, formerly priced at Rp11, 500 per kilogram, has been raised to Rp12, 500 per kilogram. Furthermore, the price of sugar for consumption will see an increase to Rp14, 500 per kilogram, and in disadvantaged, frontier, and outermost (3T) areas, it will be Rp15, 500 per kilogram, up from the previous Rp13, 500 per kilogram.

Adi also stressed the importance of consistency among sugar business owners in their efforts to collaboratively develop a robust national sugar industry. In early 2023, when sugar prices were low, the government encouraged business owners to procure farmers’ produce at competitive rates. However, prices subsequently increased during milling. Hence, Adi called upon business owners to maintain sustainable cooperation with the government and other stakeholders.



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