HAP Sugar Consumption Increases To IDR 14,500 Per Kg

JAKARTA The National Food Agency (Food Agency) has officially raised the Sales Reference Price (HAP) for consumption sugar at the consumer and producer levels.

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

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.

Head of the National Food Agency (National Food Agency) Arief Prasetyo Adi said the increase in reference prices of Rp1,000 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 consumption sugar 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.

Therefore, Arief requested that HAP of sugar consumption at the producer level be IDR 12,500 per kg as soon as possible. Arief said this was in accordance with President Jokowi's directives asking for food prices at the good producer level.

Then prices in traders are reasonable, up to the consumer level are also natural. We need to collaborate with each other so that the price of consumption sugar refers to the regulations regulated in the 17th Entity of 2023," said Arief.

According to Arief, good sugar selling prices can motivate farmers to continue to produce. So that it can encourage an increase in the supply of sugar cane raw materials which can ultimately increase the availability of domestic sugar.

For this reason, Arief said that the Food Agency will discuss with large traders of consumption sugar so that the implementation of the agency can run as expected.

"In addition, we also encourage collaboration between Food SOEs, together with Bulog, ID FOOD, and SGN Subholding SOE Plantations in designing supply and funding cooperation in efforts to stabilize sugar supply and prices," he said.

The involvement of Food SOEs is part of improving national sugar management as mandated in Presidential Decree 125 of 2022 concerning the Implementation of Government Food Reserves (CPP).

The collaboration includes strengthening on farm and off farm which aims to meet national sugar needs, improve sugarcane farmers' welfare, and maintain the stability of sugar prices for farmers and the community.