Economy Policy

Gov’t, Independent Team to Review Sugar Cane Price Hike

The Indonesian Government has announced that it will review the proposed increase of the Basic Purchase Price (HPP) of sugar cane with the Council of the Sugar Cane Farmers Association (DPP APTRI) and Independent Team.

It is expected in the near future that the HPP will be set at the most reasonable price for both the farmers and the public.

“We will discuss a win-win solution for both sides and the result is expected to be announced in the next few days,” Minister of Agriculture Amran Sulaiman said to reporters after accompanying President Joko “Jokowi” Widodo in a meeting with the DPP ATRI at Merdeka Palace, Jakarta, Tuesday (5/3).

The HPP of sugar cane is currently at Rp9,700 per kilogram and is considered too low. Thus, the DPP ATRI has requested to the President to review the price.

Chairperson of the DPP APTRI Arum Sabil said that during the meeting he told the President about the struggle of the country’s sugar cane industry, as there is no significant development due to low prices. “The average price of sugar cane from farmers is often below the production costs,” he said.

For this reason, the APTRI has proposed to the Government to immediately design a policy for farmers’ sugar purchasing price to boost sugar industry in the country.

“We hope the Government can determine the policy at least 3 months before harvesting period,” Arum said, adding that he also asked the Government to determine the buyer.

“We urge the Government to assign the Bureau of Logistics (BULOG) to be the buyer. I also wish the Central Government can control import policies so that the price can stabilize once it gets too high or too low,” Arum said, while expressed belief that the independent team will reach fair decisions. (FID / RAH / ES)


Translated by: Estu Widyamurti
Edited by: Muhammad Ersan Pamungkas

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