Trade Minister: No HPP for Sugar

Kompas/Ferganata Indra Riatmoko

A worker walks by a sugarcane milling room at the Tasikmadu sugar factory in Karanganyar regency, Central Java, on Monday (15/5). In the grinding season this year, the sugar mill is targeted to process 320,000 tons of sugarcane. The processing capacity of the mill, which was built in 1871, will be raised from 3,050 tons of sugarcane per day to 4,000 tons per day.

JAKARTA, KOMPAS – Trade Minister Enggartiasto Lukita reaffirmed on Monday (15/5/2017) that the government would not set the government’s buying price (HPP) for crystal white sugar this year. As such, the price for crystal white sugar will continue to refer to the highest reference price and retail price that the government has set.

Two sugarcane farmers associations have proposed HPP prices to the government. However, the government will not establish the said HPP. Among the reasons is the difference of the core production cost (BPP) between government-owned and private sugarcane factories. The average BPP is Rp 7,500 (US$0.56) per kilogram for private factories and Rp 10,000 per kg for government-owned factories.