Minister Of Trade Budi Prepares Import Permits For 200,000 Tons Of Crude Crystal Sugar

JAKARTA - Minister of Trade (Mendag) Budi Santoso said his party was preparing import approval (PI) for raw sugar or Raw Crystal Sugar (GKM) of 200,000 tons.

This import is carried out to strengthen the Government Food Reserve (CPP) stock.

"I'll check again, but if it has been set at the coordination meeting (limited coordination meeting), it has entered us, we will immediately issue it (the PI)," he said at the Ministry of Trade Office, Jakarta, Friday, February 21.

Previously, it was reported that the Head of the National Food Agency (NFA) Arief Prasetyo Adi said this step needed to be taken in anticipation of the risk of fluctuating the price of consumption sugar, especially ahead of the National Religious Holidays (HBKN) of Ramadan and Eid Al-Fitr.

About 200,000 tonnes of raw sugar, this year's arrival is gradual. But the guarantee is, don't let the price of farmers fall," he said in an official statement, Thursday, February 13.

Based on data from the Central Statistics Agency (BPS), Arief continued, the price began to move up. Until the first week of February 2025, there was an increase in the number of districts/cities experiencing an increase in sugar prices.

Meanwhile, continued Arief, in the third week of January there were 118 regencies/cities. From that, the number has increased to 153 regencies/cities in the fifth week of January.

"The inflation contribution is 1.4 percent, so we all need additional raw sugar which will later be processed for CPP," he said.

Arief emphasized that this import was carried out in order to increase the government's reserve stock and not in the form of white crystal sugar (GKP).

The record is that the imports carried out are only for CPP. We want to increase the level stock held by the government. Not because of production shortages, because we are still quite 4 to 5 months. But we can't take the risk for CPP," said Arief.

Arief said the CPP stock in the form of sugar as of February 12 totaled 34,000 tons. The stock is managed by ID FOOD in the amount of 22,000 tons and Perum Bulog as much as 12,000 tons.

When compared to the average monthly consumption requirement of around 235,000 tons per month, the CPP sugar stock is in the range of 14.47 percent.

"Well, what must be guaranteed is the price at the farmer level, because farmers will start harvesting in April, May, June. Then the raw sugar will be cheap at the time of the mill along with the harvest. That's the consideration," said Arief.

Based on the projected consumption of the sugar balance processed by Badanas as of January 21, it is estimated that monthly consumption needs in March 2025 will increase because it coincides with the momentum of the month of Ramadan.

In March, continued Arief, the projected consumption needs will increase by 13.39 percent or to 251,800 tons compared to February which is 222,000 tons.

Meanwhile, GKP production estimates will begin to increase in May 2025 in the range of 166,000 tons. Then June at 392,000 tons and July at 555,000 tons.

The projected peak of the GKP harvest is expected to occur in August at 621,000 tons.

Of that amount, the total annual consumption needs are projected to reach 2.841 million tons.

According to Arief, the import of 200,000 tonnes of raw sugar is below the one-month consumption requirement.

He said the government was trying to adjust because it also had to know the price of world sugar and the currency rate.

"That is a consideration. But what is clear is that the government must have food reserves and it must be controlled by SOEs," he said.