As many as 40,000 tonnes of imported sugar are targeted to enter Indonesia ahead of the Eid al-Fitr 2023 holiday. The arrival of White Crystal Sugar (GKP) is to meet the demand for sugar stocks during the National Religious Day (HBKN) of Ramadan and Eid al-Fitr.
The CEO of Holding Pangan ID FOOD, Frans Marganda Tambunan, said that the first loading and unloading was carried out on Saturday (1/4) with the arrival of 32,500 tonnes out of a total assignment of 107,900 tonnes, which will arrive gradually until May 2023.
"The realization of this sugar assignment is expected to maintain sugar prices in accordance with the Highest Retail Price (HET) set by the government. Our target before the end of HBKN 2023 is to have another arrival of approximately 40,000 tonnes of GKP," explained Frans Marganda in a written statement on Sunday (2/4).
Furthermore, Frans mentioned that the plan for the realization of the sugar procurement assignment in 2023 will enter through several points of arrival in various regions, including the Tanjung Priok Jakarta Port, Tanjung Perak Port, and Medan.
Meanwhile, the Head of the National Food Agency (NFA), Arief Prasetyo Adi, said that the procurement of sugar is carried out to meet the needs of the community, which usually experiences an increase in demand during the HBKN momentum, while the new sugar cane grinding season will start around May.
Therefore, sugar availability still needs to be supported from abroad through imports to ensure that prices in the market can continue to run in accordance with Regulation No. 11 of 2022 concerning Reference Prices for Purchases at the Producer Level and Reference Prices for Sales at the Consumer Level (HAP) for Consumer Sugar Commodities amounting to IDR 13,500/kg.
Based on the 2023 Food Commodity Balance calculation of the national demand of 3.4 million tonnes, national production is estimated to reach 2.6 million tonnes. Meanwhile, there is still a carry-over from 2022 of 1.1 million tonnes, so that the procurement of 900 thousand tonnes is still needed so that there will still be 1.2 million tonnes of stock at the end of the year, and the demand for sugar during the HBKN momentum can be sufficiently fulfilled.
"This procurement from abroad is only to secure sugar stocks to meet the needs for supply and price stabilization, especially during Ramadan and Eid al-Fitr. In accordance with the agreement of the Technical Coordination Meeting (Rakornis) and the Limited Coordination Meeting (Rakortas) at the Ministerial level last January," said Arief.
He added that this step is also in line with President Joko Widodo's direction for the Ministry/Agency to calculate and ensure food stocks for the people in detail. Arief also emphasized that procurement must prioritize domestic production.
Therefore, the NFA also requested a Ministerial assignment from the BUMN to absorb farmer sugar. Arief mentioned that the last agreed price was IDR 11,500/kg, but he said that he would conduct a review with the association of smallholder sugarcane farmers for adjustments to obtain the appropriate price.
"Because according to President Jokowi's order, the price must be fair at the level of farmers, millers, and consumers. BUMN as an off-taker of farmers' and breeders' production," he concluded.
