Indonesia; Sugar prices predicted to be this high due to the Iran-Israel conflict

Published 2024년 4월 16일

Tridge summary

Aris Toharisman, President Director of PT Sinergi Gula Nusantara, has stated that the ongoing conflict between Iran and Israel is unlikely to have a significant impact on Indonesia's domestic sugar prices. However, he noted that an escalation could affect prices if it weakens the rupiah against the US dollar. The international sugar market remains stable, with current prices at 21-22 US cents per pound, which is lower than last year's 27 cents. Indonesia's domestic sugar production is expected to hit 2.3 million tons this year, with imports from Thailand and India supplementing local supply and reducing reliance on Brazil. The government's reference price for sugar is set at IDR 16,000 per kg, while the retail price is slightly higher at IDR 17,970 per kg.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Jakarta, CNBC Indonesia - It is predicted that the conflict between Iran and Israel will not have a significant impact on domestic sugar prices. However, if the conflict continues to escalate and spreads, and causes the rupiah to fall further, the price of sugar will be affected. President Director of PT Sinergi Gula Nusantara (SGN) Aris Toharisman said that the collapse of the rupiah against the US dollar since the initial trading session today, Tuesday (16/4/2024) would trigger an increase in the price of sugar imports. "But it's not too bad as long as sugar is available on the global market," he told CNBC Indonesia. "If the Israel-Iran war spreads, maybe there will be an effect. But I don't think it will be too widespread. If the conflict is local, only between Israel and Iran, it won't have an impact on domestic sugar prices," he added. If there is an increase in the price of imported sugar, he said, it will still be due to the effect of the weakening of the rupiah exchange ...

Source: Cnbcindonesia