Indonesia to import 968,143 tons of raw sugar

JAKARTA. The government will allow the import of 968,143 tons of raw sugar in the second quarter of this year for the food and beverage industry, according to the Trade Ministry’s acting director general for foreign trade, Karyanto Suprih.

“It [the permit document] has been signed and will probably be released next Monday,” Karyanto said.

Imports of the sweetener are expected to increase by 5 percent this year, or 3.2 million tons, from 2.88 million tons in 2015, to catch up with the food and beverage industry’s average growth of over 8 percent per year.

Indonesian Food and Beverage Association (Gappmi) chairman Adhi S. Lukman said the industry would need 3 million tons of sugar this year.

“To meet needs we need 3.2 million tons of raw sugar,” he told The Jakarta Post.

Indonesia, Southeast Asia’s biggest sugar consumer, has vowed to achieve self-sufficiency in the commodity within three to four years under the administration of President Joko “Jokowi” Widodo.

According to the Trade Ministry, sugar consumption within the consumer retail segment is 3 million tons per year, while national sugar production is only 2.5 to 2.7 million tons, resulting in a shortfall of 300,000 to 500,000 tons annually.

Indonesia’s youthful population and growing middle class are feeding demand from the food and beverage industry as well as from hotels and restaurants, which means needs will continue to rise, highlighting opportunities that the sector has to offer. (sha/dan)