10 Jun 2016
"The production has been slightly disrupted due to the hampered supply. The government should have anticipated this from the beginning," said GAPMMI Chairman Adhi S. Lukman in Jakarta on Thursday (June 9) night.
Due to the issue, Adhi said that the food and beverage industry had difficulties and had no other choice but to maintain the price. If they want to change the price at consumer level, they need to issue a notice one month in advance.
The situation is worsened by the delayed milling season that was initially estimated to start at the end of May 2016 due to the rainy season.
"During the rainy season, the cane yield is low and the output is not significant," he said.
He said that until to date, there were at least 10 food and beverage companies that had declared that they were in a very concerning situation. Several of the companies need 70,000 tons of sugar supply per year, while the supply they received so far for the first semester was only 30,000 tons.
"At least 40,000 tons of sugar should have been available in the first semester. That is the reason why they called me and said they were in an SOS situation, or save our soul, as they are afraid that they will experience a sugar supply shortage before Eid," he said.
The GAPMMI itself will meet with the Ministry of Commerce to discuss this issue. In addition, the business group, together with Kadin, will also conduct a direct inspection of the price of goods sold in the market.
The Indonesian Employers Association (Apindo) also regrets the shortage in the industrial sugar stock. Apindo Chairman Hariyadi Sukamdani said that the food and beverage companies had been sacrificed for the provision of consumer sugar.
If this situation is allowed to continue, Hamdani is convinced that it will cause problems, both at the level of producers and consumers.
"This issue must be resolved and must receive serious attention. We urge the government to sort out the bureaucracy related to the industrial sugar, and properly manage the available data," he said.
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