Sugarcane farmers urge the government to hurry and stock up on sugar, here's the reason

Published 2024년 4월 19일

Tridge summary

Soemitro Samadikoen, the General Chair of the Indonesian People's Sugar Cane Farmers Association (APTRI), has advocated for the establishment of national sugar reserves in Indonesia to stabilize domestic sugar prices and manage fluctuations more effectively. He criticized the government's current strategy of merely adjusting the Reference Sales Price (HAP) for sugar, which he deems insufficient in addressing the recent surge in sugar prices. Soemitro emphasized the absence of a national sugar stockpile, either by the government or state-owned enterprises (BUMNs), which hampers their ability to intervene in the market. He proposed that BUMNs should not only import or purchase sugar but also maintain a portion of it as national reserves to help regulate market prices and ensure stability.

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Original content

Jakarta, CNBC Indonesia - General Chair of the Indonesian People's Sugar Cane Farmers Association (APTRI) Soemitro Samadikoen said the government must immediately create national sugar reserves. That way, he said, the government could quickly intervene if domestic sugar prices fluctuated. Because of this, he believes that the government's current policy of relaxing the Reference Sales Price (HAP) for sugar is not appropriate to overcome the problem of the current spike in sugar prices. "The government, in this case BUMN, in fact does not hold sugar stocks. So it doesn't hold buffer stocks (national reserves). Even though BUMNs are told to buy them, they are not independent enough to be able to intervene in the market, so when they are imported they are simply sold straight away. "So there is no thought of buffer stock," said Soemitro to CNBC Indonesia, Friday (19/4/2024). "Our weakness is that in reality the government doesn't hold the national sugar stock, and we don't have the ...

Source: Cnbcindonesia