Determination of HPP Rp7.000 Sugar Cane Farmers Denied

JAKARTA - Indonesian People's Sugar Cane Growers Association (APRI) does not agree with the decision of the Ministry of Commerce (Kemendag) which set of Rp7.000 Sugar HPP.

"I do not know what the reason for the government. If they are afraid of inflation, I think not. Because the impact of increased sugar is not as big increases in rice prices. The price is also a stimulus for increased self-sufficiency in sugar production, so 2014 could be reached," said Chairman Abdul Wachid APRI when contacted Legal, Saturday (07/05/2011).

In addition, he stated that Rp7.000 numbers were the result of recommendations from the independent assessment team from the Ministry of Agriculture food and IPB, UGM, and UB.

"According to their study, the cost of processing sugar cane production in many regions has increased due to wage and land rent increased to Rp6.800. After that 10persen plus HPP we recommend the Kemendag to HPP at Rp7.000 per kilogram of sugar cane," she added.

Furthermore, he stated that the decision Kemendag who set prices at Rp7.100 per kilogram of sugar will only make a profit Sharring small farmers and not encouraged to increase production.

For information, Ministry of Commerce issued a Regulation of the Minister of Trade (Permendag) Number 11/M-DAG/PER/5/2011 dated May 4, 2010 which provides for sugar HPP Rp7.000 per kilogram.