Sugar Auction Crisis

Kompas/Raditya Helabumi

Warehouse workers arrange sacks of refined sugar at a food factory in the Mekar Jaya Industrial Zone of Tangerang, Banten, Monday (25/9). The government’s plan to sale domestic refined sugar by auction may extend the supply chain for the commodity, raising fears of increased prices among businesses and industries that use refined sugar as raw material. The government’s sugar auction plan is intended to support more equitable pricing and access for small to medium businesses.

The government’s plan to auction domestic refined sugar was delayed to early 2018in response to objections from industry players.

The Trade Ministry had said earlier that the government planned to sell refined sugar for the domestic food and beverage industry through auction starting in early October. The auction would be managed by PT Pasar Komoditas Jakarta.