Government Raises Sugar Prices, Farmers Say This

Sugar Illustration (Doc. Antara)

JAKARTA - The government through the National Food Agency (NFA) has officially raised the Sales Reference Price (HAP) at the consumer level and the Reference Purchase Price (HAP) for sugar at the producer level.

The price adjustment for consumption sugar is contained in the National Food Agency Regulation (Perbadan) Number 17 of 2023.

Responding to this, the General Chairperson of the Indonesian People's Tebu Farmers Association (APTRI) Soemitro Samadikoen hopes that the implementation of this agency can boost prices at the farmer level.

"In order to achieve the reference price set by the government," he said in Jakarta, Thursday, August 10.

He said, the current sugar auction price is still below HAP with a price range of Rp12,040 per kg to Rp12,394 per kg.

The price adjustment in the 17th Anniversary of 2023 stipulates that the latest consumption of sugar HAP is applied at IDR 12,500 per kilogram (Kg) at the producer and HAP level at the consumer level of IDR 14,500 per kg, and IDR 15,500 per kg specifically for Eastern Indonesia and the Disadvantaged, Outermost, Remote, and Border (3TP) areas.

"APTRI proposes that the number of increases from HAP in the field be in the range of 5 to 10 percent and that way farmers can be further motivated to produce," he said.

Meanwhile, based on the Prognosis of the National Food Agency, the balance of sugar commodities is still partially met from outside. The current national consumption of sugar needs are 3.39 million tons per year, while the estimated national sugar production in 2023 is 2.7 million tons.

For the condition of consumption sugar prices, based on the NFA Food Price Panel, the national average price of consumption sugar at the consumer level as of August 7, 2023 was at a price of Rp. 14,658 per kg.

Previously, Head of the National Food Agency (NFA) Arief Prasetyo Adi said the increase in reference prices of Rp. 1,000 per kg had gone through discussions and discussions as well as input from various sugary stakeholders, including invitees who attended this time's socialization.

"The regulations that we issue have certainly received input from various parties. The increase in reference prices today is based on the conditions we face in accordance with the calculation of the Basic Cost of Production which considers the increase in fertilizer prices, seeds, labor, and distribution costs that must be incurred," said Arief in Jakarta, Wednesday, August 9.

Arief said, the increase in the HAP of sugar consumption is an adjustment to achieve price balance at the producer, trader and consumer levels. This is in accordance with the direction of President Joko Widodo (Jokowi) so that the reasonable prices in the three lines are maintained according to current economic prices.