Badanas: Planned To Import Crude Crystal Sugar For Government Reserves

Head of the National Food Agency (Bapanas) Arief Prasetyo Adi. (Photo: Doc. ANTARA)

JAKARTA - The National Food Agency (Bapanas) stated that the plan to import raw crystal sugar (GKM) or raw sugar as a step in strengthening government food reserves (CPP) mainly anticipates fluctuations in consumption sugar prices ahead of Ramadan and Eid 2025.

Head of Badanas Arief Prasetyo Adi said that the steps to procure raw crystal sugar from outside Indonesia were taken by ensuring that it would not have an impact on farmers, especially during harvest.

"We are talking about increasing CPP, because CPP sugar is necessary. Earlier the price of sugar was reported by BPS, the price began to move up. The contribution of inflation was 1.4 percent, so we all need additional raw sugar which will later be processed for CPP," said Arief as quoted by ANTARA, Friday, February 14.

He conveyed that based on data from the Central Statistics Agency (BPS), until the first week of February 2025, there was an increase in the number of districts/cities experiencing an increase in sugar prices.

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.

"So, imports are not in the form of GKP (white crystal sugar), not directly. What is noted is that the imports carried out are only for CPP. We want to increase the level stock held by the government," he said.

He emphasized that the import plan was not due to a shortage of domestic production.

"Because, we are still enough for about 4 to 5 months. However, we cannot take the risk for CPP," said Arief.

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 235,000 tons per month, the CPP sugar stock is in the range of 14.47 percent.

According to him, what must be guaranteed is the price at the farmer level, because farmers will start harvesting in April, May, and June 2025.

Then, raw sugar will be cheap at the time of the mill along with the harvest. This is a consideration for the plan to import.

"About 200,000 tons of raw sugar, the arrival this year is gradual. But, the guarantee is, don't let the price of farmers fall," he said.

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

In March, the projected consumption needs will increase by 13.39 percent or to 251,000 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, the total annual consumption needs are projected to reach 2.841 million tons.

"The amount of 200,000 tons of raw sugar is below the consumption requirement for a month. We try to adjust it because we also have 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 explained.

Furthermore, Arief said that based on data from the Food Price Index from the Food and Agriculture Organization (FAO), the price of sugar in the international market in January 2025 was experiencing a 6.8 percent decline to 111.2 compared to the December 2024 index of 119.3.

Meanwhile, on an annual basis it decreased by 18.5 percent compared to January 2024 which is in index 136.4.

He added that in the assignment, his party would write to SOE Minister Erick Thohir and would discuss this matter.

"But, what is clear is that today our sugar stock is sufficient. Then, how much stock is controlled by the government, it is important, so that the government can freely intervene," said Arief.