SUGAR MILLS REVITALIZED TO INNOVATE PRODUCTION

by Andi Abdussalam

Jakarta, Dec 1 (Antara) - The government, through State-Owned Enterprises (SOE) Ministry, is revitalizing sugar factories belonging to state-owned plantation firms (PTPN) and innovating their products, in an efforts to increase production as well as the competitive edge.          Efforts to boost the factories¿ sugarcane derivative product innovation are made to increase the added value and competitiveness.          In its attempt to improve its capitalization and maximize its business potential, PT Perkebunan Nusantara Group (PTPN Group), for example, is developing a downstreaming program for its cane product into bio-ethanol.          The company is also transforming its refining production process into Remelt Carbonatation. It has also increased the production capacity of five of its mills from 20 thousand tons cane per day (TCD) to 32 thousand tons TCD.          Starting from 2019, another state-owned plantation company, PTPN X, will convert fuel grade bio-ethanol into extra neutral alcohol (ENA) or industrial grade bio-ethanol, with a capacity of 100 Kiloliters Per Day (KLPD), and fermented bagasse pellets, which can be used as fuel, amounting to 3 million tons per day.

INDONESIA NEEDS EFFICIENCY IN SUGAR PRODUCTION

by Andi Abdussalam

Jakarta, Nov 3 (Antara) - Indonesia, which has extensive and fertile land, should logically be able to maintain its sugarcane plantations and sugar mills efficiently, in order to meet the need for sugar of its people.          However, so far, the government still has to import the commodity to meet about 50 percent of its people's need, particularly sugar for industry.          The problem that the country's sugar business is facing is the inefficiency of most of its sugar mills. Additionally, the sucrose content of the country's sugarcane and the competitiveness of its sugar production are both low.          White sugar production by the country's sugar mills is only about 2.7 to 3 million tons per annum or only about 50 percent of the need at about 5 to 6 million tons. Thus, the balance should be covered by imports.     The production of the sugar factories was affected partly due to the condition of the old mills. Hence, the Ministry of State-owned Enterprises (SOE) announced last year that it was planning, beginning in 2018, to shut down 23 of the 45 sugar mills in Java in stages by 2020.          According to the Center for Indonesian Policy Studies (CIPS), the national sugar mills should increase the competitiveness of sugarcane farmers' production by increasing the sucrose content of their canes.

FARMERS REJECT PLANNED CLOSURE OF SUGAR MILLS

by Andi Abdussalam

Jakarta, Oct 15 (Antara) - Seeing rising sugar mill inefficiency from high costs, low productivity, decreasing sugarcane plantations and idle capacity, the state enterprises ministry is considering shutting down 10 sugar factories.         This idea contradicts Agriculture Minister Amran Sulaiman's plan when he said last April that he would build 10 new sugar mills to push up sugar production. The minister planned to build new factories as Indonesia so far still imported some 50 percent of its domestic needs which reached about five to six million tons per annum.          State-owned plantation companies (PTPNs) held a meeting with the deputy for agro-industry and pharmacies of the Ministry of State Enterprises, Wahyu Kuncoro, on October 6 and reportedly agreed to the closure.          However, the state enterprises ministry plan to close down the mills (PGs) has been rejected by sugarcane farmers.          Chief Patron of the Indonesian Sugarcane Farmers Association (APTRI), Arum Sabil firmly rejected the plan of the state enterprise ministry to close down nine mills in Java and another one outside Java.

INDONESIA HOPES TO STOP SUGAR IMPORTS

By Andi Abdussalam

Jakarta, April 21 (Antara) - The government will make utmost efforts to boost its sugar production, meet the domestic needs, and stop the importation of the commodity.          The government will strive to increase the country's sugar production by building 10 new sugar factories in addition to the existing 60 old sugar mills to expand the acreage and to boost the productivity of sugarcane plantations.          So far, Indonesia has been importing sugar to meet its domestic needs as the local sugar mills are only able to produce some 50 percent of the country's annual requirement of some five to six million tons.          This year, the government has allocated a quota for the importation of 3.22 million tons of raw sugar to meet the needs of the country's food and beverage industry for refined sugar in 2016.         "The figure increased by five percent from that in the previous year as the need for refined sugar for the food and beverage industry increased by over eight percent per annum," Acting Director General of External Trade of the Ministry of Trade Karyanto Suprih had stated last month.

INDONESIA TO IMPORT 3.22 MILION TONS OF RAW SUGAR

By Andi Abdussalam

Jakarta, March 19 (Antara) - The Indonesian government has allocated a quota for the importation of 3.22 million tons of raw sugar to meet the needs of the county's food and beverage industry for refined sugar in 2016.         "The figure increased by five percent from that in the previous year as the need for refined sugar for the food and beverage industries increased by over eight percent per annum," Acting Director General of External Trade of the Ministry of Trade Karyanto Suprih stated in Jakarta Friday.          The figure for refined sugar in 2016 was based on a moderate five percent increase prediction from the need in 2015 which was 2.89 million tons. So, the figure in 2016 has been set at 3.03 million tons or equivalent of 3.22 million tons of raw sugar.          The trade ministry will soon issue a permit for the importation of 968,143 tons of raw sugar for the second quarter (April-June) of 2016 to cater to the needs of the domestic refined sugar industry.          "It has been signed and will be issued on Monday (March 21)," Karyanto Suprih stated.

WILL SELF-SUFFICIENCY IN SUGAR PRODUCTION REMAIN A DREAM?

By Andi Abdussalam

Jakarta, July 24 (Antara) -- Once again, the Trade Ministry has issued a license to import 640,430 tons of raw sugar, to meet the need for the commodity in the third quarter of the year.         "The ministry has already issued a license to import some 600 thousand tons of sugar," Trade Minister Rachmat Gobel said on Thursday.         The annual importation of sugar seems to reflect Indonesia's inability to meet its ambition to become self-sufficient in sugar production.         As an agrarian country with vast land for agriculture, Indonesia should be able to become a major global exporter of agricultural products. Yet, the country has been adversely importing agricultural products such as rice, fruits, soybean, sugar and others.         Besides that of rice, the import of sugar hurts local farmers nearly every year. These two agricultural commodities have always sparked controversy, sometimes used as a 'weapon' to criticize political adversaries.         However, the inability of the country to meet its need for sugar has forced the government to import about half its annual need for more than 5 million tons per annum.         The country's white sugar production capacity is 2.7 million tons per year, as compared to consumption need of 4.8 to 5 million tons a year. The remaining 2.3 million tons is imported.

DOMESTIC SUGAR MARKET NEEDS PROTECTION

By Andi Abdussalam
Jakarta, April 27 (Antara) - The consumer market at home must be protected from the influx of imported refined sugar in order to maintain stability in sugar prices and to protect the interest of the domestic sugarcane farmers.         Indonesia has been importing refined sugar primarily to cater to the needs of the food and beverage industries rather than to meet its domestic demand. Thus, imported refined sugar may not be sold in the domestic open market.          However, in reality, imported refined sugar still reaches the consumer market, which is disadvantageous to the local sugar producers and sugarcane farmers.          Although the government has issued a policy to eliminate the services of sugar distributors, who are suspected to have leaked imported refined sugar into the consumer market, yet imported refined sugar is still found in the local markets, such as Banyumas and Cilacap in Central Java, for household consumption.

GOVT TO DEVELOP INTEGRATED SUGAR INDUSTRY

By Andi Abdussalam

Jakarta, Dec 21 (Antara) - The government will develop integrated sugar industry to boost production and eventually free the country from dependence on sugar imports which so far still account for over 50 percent of total national needs.         "The government is formulating a road map for the development of the integrated sugar industry with the aim to meet domestic demand and to stop sugar imports," Trade Minister Rachmat Gobel stated on the sidelines of his working visit to Bangkok on Saturday.          The Ministry of Trade is preparing mid- and long-term strategies as part of efforts to support the development of the integrated sugar industry and to stop the import of the commodity, Minister Rachmat Gobel said.          In keeping with this purpose, the minister affirmed that he would cooperate with Industry Minister Saleh Husin and Agriculture Minister A. Amran Sulaiman to create the road map on the development of the country's integrated sugar industry to achieve food sovereignty in Indonesia.          The integrated sugar industry is expected to increase production and stop sugar imports.

GOVT DETERMINED TO ACHIEVE SUGAR SELF-SUFFICIENCY

By Andi Abdussalam

Jakarta, Dec 5 (Antara) - Indonesia, which imports about 50 percent of the sugar the nation requires, is once again determined to increase its sugar production and achieve self-sufficiency in sugar supplies.          The previous government, under former president Susilo Bambang Yudhoyono, created a road map for sugar development to increase the country's sugar production to about 5.7 million tons by 2014, thus achieving self-sufficiency.          However, over the past several years, the country has repeatedly failed to increase production, meeting about 50 percent or less of its annual need of over 5 million tons, although there are some 60 sugar mills in the country.          In 2011, for example, the government was forced to lower its sugar production target from 2.7 million tons to 2.57 million tons. However, by the end of 2011 farmers produced 2.26 million tons, though this was still less than the annual need of some 5 million tons.          And in 2012, too, Indonesia sharply cut its production target from 4.4 million tons to 2.6 million tons, while in 2013, production dropped to 2.5 million tons from the target set at 2.8 tons.          The target for 2014 was set at 3.1 million tons. Now, this target has been scaled down from the previous target, as set in the road map at 5.7 million tons by the Yudhoyono government.

SUGAR PRODUCTION EXPECTED TO DROP AGAIN

By Andi Abdussalam

Jakarta, Sept 25 (Antara) - In contrast to the government's target to achieve self-sufficiency in sugar at the end of its five-year term in 2014, sugar production in the country has continued to drop over the last three years.          Director of the Indonesian Sugar Plantation Research Centre Aris Toharisman said on Tuesday that the national sugar production is expected to drop by 10-20 percent this year compared with the same period last year.          With only three months of the milling season remaining, national sugar production is not likely to exceed 2.3 million tonnes. "The national sugar production during last year's milling season had reached 2.6 million tonnes. This year, the production will fall below that," added Aris.          The government has set itself a target of achieving sugar self-sufficiency by 2014 to meet the country's annual need for sugar, amounting to about five million tonnes.          However, over the last three years, the country's sugar production has continued to decrease, forcing the government to revise and reduce its annual production target.          The government lowered its sugar production target from 2.7 million tonnes to 2.57 million tonnes in 2011. Yet, by the end of 2011, it managed to produce only 2.26 million tonnes of sugar. And last year, too, it sharply cut its production target from 4.4 million tonnes to 2.6 million tonnes.

RI UNLIKELY TO ACHIEVE SUGAR SELF-SUFFICIENCY TARGET

By Andi Abdussalam

Jakarta, Oct 20 (ANTARA) - It seems the government is unlikely to achieve its sugar self-sufficiency target of producing 5.7 million tonnes per annum by 2014.          It has just two years left to achieve the target, while sugar production has never exceeded 2.7 million tonnes per annum in the past 10 years.          Besides, the government revised down its sugar production target from 2.7 million tonnes to 2.57 million tonnes in 2011. And this year, too, it sharply cut its production target to 2.6 million tonnes from 4.4 million tonnes.          In order to achieve its sugar production target of 5.7 million tonnes by 2014, the government should expand its sugar cane plantations to approximately 850,000 hectares from the present 450,000 hectares.          According to Ismed Hasan Putro, the president director of PT Rajawali Nusantara Indonesia (RNI), an agro-industry company which has at least 10 sugar mills in Java, the government needs to bring an additional 400,000 hectares of land under sugar cane cultivation if it wants to achieve its 2014 target.          "However, it will need some 2.5 years to provide that much land because the effort will involve a lot of paperwork," Ismed explained.          However, there is not enough land available for plantation purposes in Java, which is crammed with sugar mills for the processing of sugar cane. Additional land for plantation expansion is available only outside Java.         The self-sufficiency production target had been set with the presumption that sugar cane plantations and factories would be expanded. However, that has not happened, due to which the government has had to revise down its production target.          "Those targets are unlikely to be achieved because there was no expansion of sugar plantations as planned. Moreover, efforts to modernise old sugar factories and plans to build new ones also failed," Plantation Director General Gamal Nasir said last month.          He noted that the target was set based on the assumption that 350,000 hectares of additional land would be brought under sugar cane cultivation.           "The expansion plan has failed. Besides, the modernisation plans for old sugar factories remain in the pipeline, as do the plans to build new factories. We have only two years left to go," Gamal pointed out.          However, he added, if the government managed to successfully implement the plans now, sugar cane production could reach 3.1 million tonnes by 2014.         Based on official data, the country's annual sugar production during the 2002-11 period never exceeded 2.7 million tonnes. The peak production of 2.7 million tonnes was recorded in 2008.         Therefore, publicly listed RNI called on the government to step up plantation expansion by bringing more land outside Java under sugar cane cultivation in order to meet the nation¿s sugar self-sufficiency target.          Meanwhile, RNI president director Ismed Hasan Putro pointed out the farmlands in Java were no longer as productive as they used to be. Therefore, he added, if the government continued to rely heavily on Java, it would never achieve its self-sufficiency target.          "If the government provides us with 100,000 acres of land, or 45,000 hectares, I will build a new sugar factory with a capacity of 20,000 tonnes. The construction costs for the factory and the selling of its products will be my responsibility," Ismed said at the Parliament building last week.          He said that if the government permitted RNI, he would soon set up the factory. "We have the money and the human resources," he stated.          Meanwhile, the ministry of agriculture said it would continue to make efforts to boost national sugar production by taking steps to improve the productivity of the existing sugar cane plantations.     ¿We would like to at least reach 3.1 million tonnes by 2014. We will use new seeds at plantations where harvest has already been done four times. This step will be taken to increase productivity," Agriculture Minister Suswono stated.           He added that his ministry cooperated with the Indonesian Sugar Plantation Research Centre (P3GI) in preparing sugar cane seeds of superior variety in order to increase productivity.           The seeds provided by P3GI so far have proven to be of high quality. Therefore, the ministry has set itself a target of planting such seeds over 50,000 hectares of land in order to achieve its production target for 2014.          "At present, finding land is still the main problem facing sugar cane plantation expansion efforts. The government still needs a total of 350,000 hectares of land, in addition to the existing 450,000 hectares, so it can achieve its 2014 target," Suswono said.          Indonesia's annual sugar consumption is estimated at 5 million tonnes, while the country produces only 2.50-2.57 million tonnes of crystal white sugar a year.         Therefore, almost 50 percent of domestic demand, including from the food and beverage industry, is met by importing sugar. ***2***   (T.A014/A/KR-BSR/A/A014) 20-10-2012 17:21:0

TRADE CHAMBER SUSPECTS CARTEL BEHIND SUGAR PROBLEM

By Andi Abdussalam

Jakarta, July 7 (ANTARA) - The Indonesian Chamber of Commerce and Industry (Kadin) has said that the government's inability to uncover the sugar cartel and settle overlapping interests among related government agencies has caused the nation's sugar problems to protract for years.          The chamber also believed that the ministry of industry and the ministry of trade were not firm and transparent while slapping sanctions on parties that leaked refined crystal white sugar to the consumer market.         "The government has not yet been able to manage the country's sugar production, distribution and trade well. In addition, supervision by the House (DPR) and the Business Competition Supervisory Commission (KPPU) is not yet good so they (DPR and KPPU) face difficulties to uncover the sugar cartel," Kadin chairman for trade, distribution and logistics affairs Natsir Mansyur said on Friday.         Local sugar producers have often complained for years about the leakage of refined sugar, imported to bridge the need from food and beverage industries, into the retail market.  So far, the government imports about 50 percent of the country¿s sugar need, particularly those from its industries.         Yet, imported sugar is often leaked into the consumer market, disturbing the sales of local sugar whose price is relatively higher.         The country's sugar need is estimated at 5 million tons annually while its crystal white sugar production is about 2.50 million to 2.57 million tons.         Thus, almost 50 percent of domestic demand, including the demand from food and beverage industries, is imported to cover the balance. But the imported sugar is often leaked into the retail market disrupting local crystal white sugar.         Natsir said Indonesia always had the same sugar problems every year when the supply would often fall short, prices often chalk up and recriminations always take place among related agencies, ministries, state-owned plantation firms (PTPN) and refined sugar producers. "These problems always take place like an annual ritual," he said.          Sugar problems often take place in the country because the supply and demand are not balanced. While sugar supply is declining, demand for the commodity is often rising, worsened by bad sugar management which has lasted for about six years.          The need to meet consumer demand at home by nation's big sugar producers PTPNs is still far from expectation while the Indonesian Sugar Council (DGI), which organizes the nation's sugar business players, is not yet able to carry out its function properly, Natsir argued.           "This is worsened by the fact that the House of Representatives has not yet carried out its supervisory function optimally and the Business Competition Supervisory Board or the KPPU still faces difficulties to uncover the sugar cartel," said Natsir Mansyur.          According to a report by Media Indonesia which quoted a statement by Deputy Minister for Trade Bayu Krisnamukthi on March 3, 2010, there were four groups that had played roles among the country's sugar cartel. One group includes four to five state-owned plantation firms (PTPNs) which produce crystal white sugar for consumption, another group comprises of first distributors from warehouses, yet another consists of a group of industries producing refined sugar and the last comprises of a group of sugar industries in Lampung province (Sumatra).         In the meantime, VIVAnews.com also reported that the Business Competition Supervisory Commission (KPPU) has in the past two years suspected the roles of the sugar cartel that caused problems in the distribution and sugar price hikes of in the country.          KPPU Chairman Tresna P Soemardi once told the House Commission on trade affairs that his commission would do its best to investigate the alleged presence of a cartel in the sugar business affairs. But he also mentioned fund constraints in doing the job.          Its discontent over incompetence in the management of the nation's sugar business was also raised by the Indonesia-Clean Movement (GIB) organization, particularly with regard to appointment of the Indonesian trade firm (PT PPI) as the sole company to import 240 tons of white crystal sugar to meet the need for the commodity in the Indonesian eastern regions last May.       According to GIB, the appointment of PPI as the sole importer of sugar violated the law.          The GIB even suspected that there was a corruption aspect in the affair. So, GIB coordinator Adhie M Massardi reported Trade Minister Gita Wirjawan, Deputy Minister for Trade Affairs Bayu Krisnamurthi, Foreign Trade Director General Deddy Saleh, PPI President Director Heynrich Napitupulu and Dierctor of PT Jawamanis Rafinasi Max Ramajaya to the Corruption Eradication Commission (KPK).         In its lawsuit, the GIB said the issuance of the trade minister's decree for the importation of sugar was categorized as corruption based on Law No.3/1971 in conjunction with Law No. 31/1999 and Law No. 20/2011 of the Elimination of Corruption Crime.         Adhie said PT PPI which was assigned to import the sugar then named eight refined sugar factories to refine the imported raw sugar into crystal white sugar. But the owners of the factories sold white sugar to the consumer market which was refined from their own raw sugar, thus enjoying massive profits.         In this regard, Trade Minister Gita Wirjawan said one should question those behind the GIB's report to the KPK. "Please check who is behind the non-governmental organization," said Gita Wirjawan on Thursday.          "As far as I remember, it was the Indonesian Sugar Council which decided to import sugar. It was not the trade ministry," added the minister.          Apart from that, Natsir of the chamber of commerce called on the government to solve the problem of the imbalance between supply and demand for sugar. "The government should solve the problem soon," Natsir said.          He said that there were several matters that had to become the focus of the government attention such as the distribution of sugar for the need of consumers in the regions. The need for sugar of consumers in the regions should be regulated by the regional governments concerned.         "Different regions have different volumes of sugar need which range between 50,000 tons and 150,000 tons. So far, the regulation on sugar distribution to regions is still centralized in nature. This causes complexities in the management of sugar distribution in the country and has become the source of speculations," Natsir said.         He said that the distribution of sugar to the regions should be regulated by the regional governments, the Kadin and the Indonesian Wheat, Sugar Businesses Association (Apegti).         Besides, the ministry of industry should also issue permits for the establishment of refined sugar factories in the Indonesian eastern region, he added.***2*** (T.A014/A/INE/B003) 07-07-2012 14:00:5

GOVT TO IMPROVE SUGAR DISTRIBUTION SYSTEM

by Andi Abdussalam

Jakarta, Dec 7 (ANTARA) - Like in previous years, local producers still complained this year about the leakage into the consumers market of refined sugar which was imported to meet the need of food and beverage industries.          In order to overcome this problem, the government will next year improve its policy on the distribution of imported refined sugar so that it would not disturb sugar production in the country. So far, the government imports about 50 percent of sugar need, particularly the need for industries.         Yet, the imported sugar is often leaked into the consumer market, disturbing the marketing of local sugar whose price is relatively higher. For this purpose, the government is conducting an audit on the distribution of imported refined sugar to trace the holes in the system through which the commodity reaches consumer markets,     Director General of Internal Trade Gunaryo said over the weekend that improvement on the government's policy would be based on the results of the auditing. "We will improve the policy based on the factual condition. We will see the real developments in the field. The results of the auditing will be taken as an input in improving policies," he said.         The director general admitted that up to now refined crystal sugar was still sold in the consumers market despite the fact that this sugar type was imported only for meeting the need of food and beverage industries.          "The leakage of refined sugar into the consumption markets is just possible. The leakage points vary. It can happen at the distribution point," the director general said.          He explained that the trade ministry was still carrying out refined sugar distribution auditing now to map the distribution lines which were prone to leakage.          Gunaryo said the problem was whether producers and distributors had followed the rules based on the trade minister's decree No. 111/2009, whether they had good documentation on the movements of sugar distribution and whether producers had appointed specified and clear distributors.          The government in May this year called on refined sugar producers to discipline themselves and supply refined sugar only to food and beverage industries in accordance with existing regulations so as not to disrupt the crystal or consumer sugar market.          It also asked producers to assign clear distributors, sub-distributors and to popularize regulations to them. "We ask them to assign clear distributors where each of them is required to sign an integrity pact to make sure that there would be no refined sugar leaked to the retail market," the director general said.          Yet, the Indonesian Cane Sugar Farmers Association (APTRI) said it still found imported refined sugar being sold in the consumption markets at home, such as in Makassar, South Sulawesi.  "We have found that it is sold not only in South Sulawesi province but also in other provinces such as in Sumatra," APTRI General Chairman Arum Sabil said.         Based on the results of investigations by APTRI in South Sulawesi on November 23 - 25, 2011, refined sugar was found in a number of areas such as in Makassar and the districts of Maros, Takalar and Goa. "The imported refined sugar is sold Rp400 rupiah cheaper per kg than the white crystal sugar produced locally," Arum said.       According to APTRI Secretary General M Nur Khabsyin, refined sugar with the brand "Bola Manis" produced by PT Makassar Tene, was sold to the consumption market in sacks (each containing 50 kg) at a price range between Rp10,000 and Rp11,000 per kg.         The release into the consumer market of refined sugar has hampered the marketing of crystal white sugar produced by local factories. Its circulation in the consumption market in South Sulawesi caused sugar produced by sugar mills in Java unable to enter the province because the need for sugar in the local market had been met.         Arum also said that the impact of the entry into the consumption markets of refined sugar could be seen from the accumulations of crystal white sugar produced at home at sugar mills' warehouses in Java.          "We are forced to keep it in the warehouse because it could not be dispatched to destinations outside Java for some of the markets have been filled with refined sugar," he said.           He said that if this situation continued to take place the price of crystal white sugar produced at home would continue to drop and farmers would not enjoy a reasonable price. "The price can drop to a level lower than the production cost," he said.       This year, the government allowed the importation of 2.4 million tons of raw sugar which after a process would only amount to about 2.2 million tons. The need for refined sugar of industry this year is estimated at between 2.2 million and 2.3 million tons.          The country's sugar need is estimated at 5 million tons annually while its crystal white sugar production is expected to reach only 2.57 million tons this year (lower than the earlier projection of 2.7 million tons due to weather anomalies).          Thus, almost 50 percent of domestic demand, including demand from food and beverage industries, should be imported to cover the balance. But the imported sugar is often leaked into the retailer market disrupting local crystal white sugar.          Therefore, the government promised to improve next year's sugar distribution system and for this purpose it is now conducting an audit on the distribution of sugar in the country.       The results of the audit are to provide pictures on the implementation of refined sugar distribution system from the producers to the distributors. Internal Trade Director General Gunaryo said distributors who did not channel the product based on regulations would be re-identified.          "We will provide recommendations for  the authority to decide the import volumes of raw sugar producers have to import. It would be seen whether or not they deserve to maintain their import permits. If they violate regulations they will no longer be given permits to import sugar," he said.***5*** (T.A014/f001) (T.SYS/A/A014/F001) 07-12-2011 12:54:

RI'S SUGAR PRODUCTION LIKELY TO MISS TARGET

By Andi Abdussalam

Jakarta, July 29 (ANTARA) - Amid legislators' calls on the government to continue monitoring progress of its sugar self-sufficiency roadmap, the Indonesian Sugar Council (DGI) is revising downward its sugar production target this year from 2.7 million to 2.57 million tons.          It seems that the country is unable to meet the target because of weather anomalies that affected various sugar cane plantations. Thus, the country's crystal white sugar production is expected to reach only 2.57 million tons lower than the earlier projection of 2.7 million tons.          "The production is estimated to be lower than the earlier target because of the effect of last year's weather anomalies is still felt this year," Head of DGI Secretariat Bambang Priyono said here on Thursday.          Although crystal white sugar production this year is lower than the initial prediction, yet production in 2011 will still be better than that of last year, when crystal white sugar production totaled 2.36 million tons only.          While this year's production estimate is only 2.57 million tons, the government has set the target of national sugar production at 5-5.5 million tons per year to reach self-sufficiency in 2014.          To achieve the target, according to Vice Agriculture Minister Bayu Krisnamurti, the government has adopted a number of policies, including allocating Rp9 trillion in funds for the revitalization of sugar mills across the country.          There are about 60 sugar factories at home which in 2009 were able to produce 2.7 million tons of sugar, though their production has been showing a downward trend in the last two years.          "Only Rp1.5 trillion of the funds has been absorbed so many sugar mills have not been revitalized," Bayu said. Some Rp55-60 billion have also been allocated for the development of sugarcane seedling.          The decline in the production is expected not to affect the government plan to become sugar self-sufficient in 2014. Therefore, legislators called on the government to keep on monitoring the development of sugar industry in the country.          "The progress of the sugar self-efficiency road map program should be reported to the House once every six months through Commission VI," Chairman of Commission VI on trade and industry affairs Airlangga Hartarto said on Monday.          The Commission VI's call is one of the conclusions reached during a joint-working meeting between Commission VI and the United Indonesia Cabinet ministers responsible for economic affairs.          He said that the government should evaluate and monitor its sugar road map program which among others covered national sugar production balance, action plans, achievement targets, schedules and budgets.          In the meeting, the House Commission VI asked the government to formulate a comprehensive system of incentives, subsidy program, land auditing, 350,000 hectares of land for sugar new cane plantations in support of the 2014 sugar self-reliant program.          Indonesia's sugarcane plantations at present cover about 480,148 hectares in 2009.          According to Agriculture Minister Suswono, based on the results of a survey, the country now has around 7.3 million hectares of idle land. Nearly 2 million hectares of the land could be used as farm land including sugarcane plantation.          So, if the acreage of plantations could be expanded and the number of sugar factories could be increased, it is expected that the country would become self-sufficient in sugar production and does not need to import the commodity.         So far, Indonesia has been importing sugar to cover the balance its sugar needs. Its own sugar production could only meet about 50 percent of its total industry and consumption needs amounting to 5 million tons per annum.          This year, over 200,000 tons of sugar still has to be imported to increase stocks.  At the end of last May, the trade ministry issued licenses for the importation of 224,000 tons of raw sugar by seven sugar producers.          The licenses to import the sugar were among others issued for PT. Perkebunan Nusantara IX (12,600 ton), PT. Perkebunan Nusantara X (30,000 ton) and PT. Perkebunan Nusantara XI (22,800 ton).          Besides, the licenses were also issued for PT. Industri Gula Nusantara (100,000 ton), PT. Kebon Agung (7,000 ton), PT. Lajuperdana Indah (24,000 ton), and PT. PG. Gorontalo (27,800 ton).          But in a coordination meeting on Thursday, Trade Minister Mari Elka Pangestu explained that the companies which had been given the license to import sugar were unlikely to carry out the sugar import quota.          State-owned sugar producer companies that have obtained the quota will not realize some of their raw sugar import quota because they have no longer idle processing capacity to produce crystal white sugar in the current milling season.          "We have issued licenses for the importation of raw sugar but we have received a report that the proceeds of farmers' sugar cane are more than enough so that they will not realize their raw sugar import quota," Trade Minister Mari Elka Pangestu said.          President Director of PT Perkebunan Nusantara XI, Irwan Basri said that during the milling season this year, the capacity of state-owned sugar mills had been fully used to process sugar cane production.***5*** (T.A014/A/HAJM/17:00/a014) 29-07-2011 17:09:

GOVT TO CUT QUOTA OF ERRANT REFINED SUGAR PRODUCERS

By Andi Abdussalam

Jakarta, June 18 (ANTARA) - Indonesia's sugar production is predicted to meet only  50 percent of domestic demand, including demand from  food and beverage industries so that imports are necessary to cover the balance.          Yet, the importation of sugar is a source of annually recurring problems that occur particularly when the government is about to import the balance. The root of the probllems is usually a conf;ict of interest  between sugarcane growers and consumers.          Refined sugar which should be used by food and beverage industry also always poses a problem as it is allegedly often leaked to the retail market.          The House of Representatives (DPR) has planned to summon the trade minister to ask for the government's plan to import over 224,000 tons of sugar.          In the meantime, the government has also threatened to give sanctions to refined sugar producers which leaked their products to the consumption markets.          "Producers will be fined directly if they leak their refined sugar to the retail markets. They will have their import quota reduced," Director General for Internal Trade Gunaryo told a hearing of the House's Commission VI on trade affairs.          The director general made the statement in response to complaints that refined sugar which is designed for industry had sometimes entered the retail markets.       "The circulation of refined sugar for industries in the retail market disturbs farmers' sugar because it is sold at a lower price. We urge that the circulation of refined sugar should be put in order based on regulations," Chairman of the Indonesian Canesugar Farmers Association (APTRI) Arum Sabil said last month.          He said this could have happened because production of refined sugar exceeded the need of food and beverage industries. The remaining then entered the consumption market.         To respond to the sugar farmer's complaint, the government will take sanctions against refined sugar producers who are proved to have leaked their sugar to domestic market.          The government also called on refined sugar producers to discipline themselves and supply refined sugar only to food and beverage industries in accordance with  existing regulations so as  not to disrupt the  crystal or consumer sugar market.          "We have summoned eight refined sugar producers and asked them to call themselves to order so that no refined sugar will enter the consumer sugar market," Gunaryo said.          Gunaryo said that the trade ministry had met with all stakeholders in the production and distribution of refined sugar. It has also set up a task force to monitor refined sugar distribution so that it would not enter the retail market.         The task force is a means of all stakeholders involved in the monitoring of refined sugar distribution.  "This forum will have a routine meeting to evaluate sugar distribution in the country," the director general said.          Besides, the trade ministry will also conduct a periodic monitoring to a number of provinces.          With the supervision and monitoring it is expected that refined sugar would not be sold at the consumption markets as the association of sugarcane farmers and crystal white sugar producers have complained about.          The government has also asked producers to assign distributors and sub-distributors. "We ask them to assign distributors where each of the distributors is required to sign an integrity pact to make sure that there would be no refined sugar leaked to the retail market," the director general said.          Secretary General of the Indonesian Refined Sugar Association (AGRI) Suryo Alam said his side was ready to help monitor the distribution of the refined sugar.          This year, he said, the government allowed the importation of 2.4 million tons which after a process would only amount to about 2.2 million tons. The need for refined sugar of industry this year is estimated at between 2.2 million and 2.3 million tons.          So, Suryo said, it is unlikely for refined sugar to enter the retail market because the government only allowed the importation of raw sugar based on the volume needed by industries.          Yet, the government's plan to import sugar to meet sugar shortage is always questioned. As the government is planning to import some 224,200 tons of raw sugar, the House of Representatives is also planning to summon the trade minister, Mari Elka Pangestu.         "I will encourage the House Commission IV to summon the trade minister to ask whether or not the planned sugar imports will harm the public's interests," House Speaker Marzuki Alie said  this week.          Marzuki said he believed the House Commission IV overseeing agriculture; forestry and plantation had complete data on the planned sugar imports.          The House Commission would ask whether or not the sugar imports were necessary and whether or not they would harm the public's interests because the plan was closely related to low-income people, particularly sugarcane growers, he said.          The government has allowed the trade ministry to issue permits for the import of 242,200 tons of raw sugar. The import sugar will be allocated to seven companies that have secured permits to import raw sugar. ***5*** (T.A014/A/HAJM/19:55/a014) 18-06-2011 19:55

PRODUCERS CONCERNED OVER FALL OF SUGAR PRICE

By Andi Abdussalam

Jakarta, May 25 (ANTARA) - Producers have expressed concern over the entry into the retail market of imported refined sugar and the downward trend of crystal white sugar price since last month which, they said could disadvantage sugar cane farmers.          "We are concerned over the declining sugar price; if this continues to take place, we are afraid we would not be able to cover production cost. After all, the government has set a benchmark price for farmers at Rp7000 per kg," Djoko Santoso, secretary of state-owned sugar cane plantation company PTPN X, said.          PTPN X has set itself the target of producing 500 thousand tons of sugar this year, a target which was higher than that in the previous year at 410 thousand tons. It would do its best to optimize the capacity of its factory and increase production efficiency in an effort to achieve the target.         "We will optimize the existing capacity, replace ineffective equipment, increase the factory performance and economize energy consumption," he said.          PTPN X is still able to increase its crystal while sugar production if the government allows it to import raw sugar to be processed into crystal sugar by its remaining idle factory capacity.          This year it has asked permit for the importation of 50 thousand tons of raw sugar to be processed into about 45 thousand tons of crystal white sugar.          However, the company's optimism to increase its production is overshadowed by fear of possible price fall of crystal sugar in the domestic market. Since the beginning of the milling season, in late April and early this month, the sugar price in the retail market has been showing a downward trend.       The average national sugar price in April was Rp10,832 per kg. It dropped to Rp10,730 per kg in the first week of May and Rp10,714 per kg in the second week.  Yet, at present the price is still higher than that in the same period a year earlier which was Rp10,443 per kg in April and Rp10,234 per kg in May.         Djoko said that his company was afraid it would be unable to cover its production cost if prices continued to fall, while the government has set the benchmark price at Rp7000 per kg at the farmer level.          Based on the trade minister's decree, this year the benchmark price at the farmers' level is set at Rp7000 per kg, much higher than the previous year's benchmark at Rp6,350 per kg.  The Rp7,000 benchmark price is effective as of May 4, 2011.          The benchmark price was set by taking into account the proposal of the agriculture minister who is also the chairman of the Indonesian Sugar Council (DGI).          Director General for Internal Trade Gunaryo said that the government set the benchmark price as a reference for the purchase of the farmers' crystal while sugar to ensure that farmers would get reasonable profit and consumers would buy it with a reasonable price.          Expert staff of the Indonesian Sugar Association, Colosewoko said the government should take into account the interest of farmers as producers and of consumers in setting the benchmark price.          "Producers want to cover their production cost and get a reasonable profit while consumers are willing to buy sugar with prices within their financial reaches. Thus, the government should accommodate these two interests by setting a fair level of prices," Colosewoko said.          As regards, the price in the retail market should not fall to a too low level which could cause producers to be unable to cover their production cost.          However the downward trend in the sugar price in the retail market has created concern for producer. After all, imported refined sugar was believed to have entered consumption market which could disturb local sugar products.          Earlier, Chairman of the Indonesian Canesugar Farmers Association (APTRI) Arum Sabil said his side had found refined sugar circulating in the consumption market.         "The circulation of refined sugar for industries in the retail market disturbs farmers' sugar because it is sold at a lower price. We urge that the circulation of refined sugar should be put in order based on regulations," Chairman of the Indonesian Canesugar Farmers Association (APTRI) Arum Sabil said.          He said this could have happened because production of refined sugar exceeded the need of food and drink industries. The remaining then entered the consumption market.          Therefore, the government has called on refined sugar producers to discipline themselves and supply refined sugar only to food and beverage industries in accordance with  existing regulations so as  not to disrupt the  crystal or consumer sugar market.          "We have summoned eight refined sugar producers and asked them to call themselves to order so that no refined sugar will enter the consumer sugar market," Director General for Internal Trade Affairs Gunaryo said.          The government has also asked the producers to assign clear distributors, sub-distributors and to popularize regulations to them. "We ask them to assign clear distributors where each of the distributors is required to sign an integrity pact to make sure that there would be no refined sugar leaked to the retail market," the director general said.          He said that the government would also reinforce the integrated goods monitoring team in supervising the distribution of refined sugar to foods and beverage industries.          Secretary General of the Indonesian Refined Sugar Association (AGRI) Suryo Alam said his side was ready to help monitor the distribution of the refined sugar.          This year, he said, the government allowed the importation of 2.4 million tons which after a process would only amount to about 2.2 million tons. The need for refined sugar of industry this year is estimated at between 2.2 million and 2.3 million tons.          So, Suryo said, it is unlikely for refined sugar to enter the retail market because the government only allowed the importation of raw sugar based on the volume needed by industries.***5*** (T.A014/ A/H-NG/A014) 25-05-2011 12:35:4

DOMESTIC SUGAR INDUSTRY LACKING COMPETITIVE EDGE

By Andi Abdussalam

Jakarta, Aug 29 (ANTARA) - The competitive edge of the country's sugar industry is still low so that the government should focus attention on increasing it if it is willing to create sugar self-sufficiency in 2014, a former agriculture minister says.              The competitive edge of domestically produced sugar should be increased because ahead sugar could no longer be protected by fixing an official price.              Low competitiveness of the country's sugar could be seen from the big margin between the price of domestic sugar and that of overseas.              "Up to now the price still shows significant difference, namely about Rp3000 per kg. This would cause sugar-based industry unable to compete with the same industry abroad," former agriculture minister Anton Apriantono said.              On the other hand, the average production of Indonesia's sugar industry is also low, namely about 6.2 tons of sugar crystal per hectare in 2009, which is far lower than sugar production in Java in the 1970s.  Production at that time could reach an average of 10 tons of sugar crystal per hectare.              The productivity of sugar industry at home is far lower compared with the average productivity of sugar industries in sugar producing countries like Australia, Egypt, Brazil, the United States, Colombia, Mexico and India.              The main factor that causes low competitiveness in the country's sugar industry is low productivity and inefficiency in the production sector. In addition, Indonesia is still importing raw sugar to the amount of about 2.13 million tons.              Therefore, the government should give attention to increasing the competitiveness of the country's sugar. It should improve the health conditions of the inefficient sugar factories in Java, expand sugar cane plantations and build new sugar mills.              "It is better for the government to use sugar import duty funds for increasing the productivity of the country's sugar cane plantations, making sugar mills more efficient and building new sugar factories," Anton Apriantono said.              In the meantime, Deputy to Chief Economic Minister for Agriculture and Maritime Affairs, Diah Maulida said so far some of the sugar import duty funds had been used to increase plantation productivity and to assist sugar cane farmers.              "Certain amount of the funds are allocated to the Agriculture Ministry which provides some of it for increasing productivity and assisting sugar cane farmers," Diah said.              The government also has an  action plan to achieve its self-sufficiency in sugar target in 2014 through increasing productivity, expanding plantations, revitalizing old sugar mills and carrying out institutional re-arrangement.              "For the revitalization of sugar mills, the government has worked out a road map and detailed plan to actions in the ministry of industry," Diah said.               With regard to the government plan to import sugar, Diah said that it was recalculating its sugar production and stocks. The import of crystal white sugar was to meet the need in the first five months next year.              "We at the end of this August recalculate the needed stocks because some have been pessimistic that production at home in 2011 would drop to only 2.2 million to 2.3 million tons. Stocks at the end of the year might decline to 800 thousand tons to one million tons so that they could not meet the need for the following five months,"  Diah Maulida said.               The plan to import sugar was also expressed by Trade Minister Mari Elka Pangestu on separate occasion. She said that Indonesia would import white crystal sugar to meet the people's need in the first five months in 2011.              "Due to long wet dry season this year, the sucrose content of sugar cane is expected to drop so that sugar production is also expected to decline to below target. We estimate production would be at 2.5 million tons, or about 200 thousand tons lower than the target," she said.              So, the minister said, the government would take an anticipatory step after it finalized its estimates on production, the needed stocks and imports.              Diah and Mari however assured that stocks would be enough until the end of the year. "There is no need to worry about stocks until the end of the year. We will import sugar only for the first five months of 2011," she said.              Earlier, President Director of state-owned Logistics Agency (Bulog) Sutarto Alimoeso said the white sugar production  was predicted to drop from 2.9 million tons to 2.2 million-2.5 million tons this year due to less supportive climate condition.              With that condition, Chairman of the Indonesian Wheat and Sugar Traders Association (Apegti) Natsir Mansyur predicted that stocks of white crystal sugar would fall short by 400 thousand tons.              Diah said further that the government would also check the capacity of mills which were usually operated to process raw sugar. This is to see the possibility of importing raw sugar to meet the people's need for white crystal sugar.              "We are aiming at importing raw sugar so that we could obtain added values," she said.              Executive Director of the Indonesian Refine Sugar Association (AGRI) HM Yamin Rahman said if raw sugar was to be imported the government should soon issue permit for its importation because the milling season would end soon.              "Raw sugar should have already arrived in October before the milling season ends. License should have been issued this August because the import process would take time. After all, Brazil which is the main producer is far. It must take time to wait for our turn because all countries also buy sugar from Brazil," he said.***2*** (T.A014/a/ H-NG /a014) 29-08-2010 13:53:1

RI NEEDS TO IMPORT 700 THOUSAND TONS OF SUGAR

By Andi Abdussalam

Jakarta, Aug 14 (ANTARA) - Businesses producing sugar-based products are calling on the government to import some 700 thousand tons of raw crystal sugar to anticipate a sugar shortage this year.          "The country's sugar need for industry and consumption is estimated at five million tons while the remainder of last year's sugar imports plus that already imported this year only total  4.3 million tons, so we still run short of 700 hundred tons,"   Food and Beverage  Businessmen Association (Gapmi) General Chairman Adhi S Lukman said on Friday.          After all, he said, sugar production of about 60 factories at home which last year totaled 2.7 million tons was predicted to drop to 2.1 tons.  This requires the government to prepare a mechanism for the importation of 700 thousand tons of raw crystal sugar to anticipate sugar shortages.          This is regardless of the fact that sugar supply to industry is still safe because refined sugar industry still has stocks. "Actually the 700 thousand tons are only for use, not for stocks. If we need stocks we need to import more (more than 700 thousands), about one to two month need," he said.          Lukman said the import mechanism should have been prepared this August so that it could be carried out next November, thus there would be no parties who could manipulate sugar prices and disadvantage sugarcane farmers.          Actually, like last year when it imported sugar for this year's stocks, the government is now also planning to import sugar but it  is designed for next year's stocks. It has predicted that sugar production in 2011 would drop.          "The import plan is more aimed at meeting next year's stocking needs in the face of a fall in domestic sugar production," Trade Minister Mari Elka Pengestu said here on Friday.          She said  the imports were especially needed to meet the need for sugar in the first five months of 2011. The government believed the dry spells in the country would affect national sugar production. "Production this year is predicted to be lower than last year," she said.          She said however stocks now were enough to meet the need for sugar in the current fasting month and during the post-fasting lebaran festivities.          Earlier, the Indonesian Refined Sugar Business Association (AGRI) insisted that the government  issue soon a license for the importation of sugar to produce refined sugar.          M Yamin of AGRI said that stocks of raw sugar to make refined sugar for industry were now declining. The refined sugar industry must be able to meet the annual need for sugar of the food and beverage industries which reached 600,000 tons.          Lukman supported Yamin's call for the government to import sugar. He said that Gapmi expressed fear that it would suffer a sugar shortage because national sugar production was predicted to decline this year.          The need for sugar for food and beverage industries this year reached five million tons. "Sugar production last year was 2.7 million tons and this year it is expected to drop to 2.1 million tons," he said.          He said, if sugar imports this year and the remainders of last year's imports were added up, the total would only reach 4.3 tons. "So, there is a shortage of 700,000 tons," he said.          Even though Indonesia is an agricultural country, the government has to import sugar every year to meet the need at home.          In September last year, the government decided to import 180,000 tons of raw sugar in an effort to increase its sugar stocks and to secure sugar supplies in the country in the first five months of 2010.           In 2009, the government was allocating 1.6 million tons of raw sugar imports for refined sugar industries, and the importation of 380,000 tons of refined sugar.           Indonesia intends to become sugar self-sufficient but for this it needs to expand its sugarcane plantations. It needs another 350 thousand hectares of sugarcane plantation to reach self-sufficiency in sugar production.          Indonesia's sugarcane plantations at present cover about 480,148 hectares. During the 2004-2009 period, sugarcane plantations did not expand significantly. In 2004 it covered 344,795 hectares and in 2009 it was recorded at 480,148 hectares only.          Based on the results of a survey, the country now has around 7.3 million hectares of idle land, Agriculture Minister Suswono said. Nearly 2 million hectares of the land could be used as farm land including sugarcane plantation, he said.          The Agriculture Ministry has earlier projected that sugar stocks in 2010 will reach 6.24 million tons. The stocks will come from initial stocks, white crystal sugar production, refined sugar production, and imported sugar.            Meanwhile, the country's sugar needs this year are projected to reach 4.94 million tons.  As such, the country is expected to have a sugar surplus of up to 1.3 million tons this year.***2*** (T.A014/A/HAJM/13:05/f001) 14-08-2010 13:06:5

GOVT URGED TO STOP CIRCULATION OF REFINED SUGAR

By Andi Abdussalam

Jakarta, July 22 (ANTARA) - The government has been urged by legislators and businesses to overcome the circulation of refined sugar as direct sales to consumers of this type of sugar, which is only designed for industry, has caused businesses to suffer billions of rupiahs.          "The government has to put in order refined sugar which has strayed into public market for direct consumption," Aria Bima, chairman of the House Commission VI for trade affairs said Thursday.          The legislator made the appeal following reports that refined sugar which is designed for food and drink industries has been sold to the public for direct consumption in the past several weeks.          The same appeal was also made by the Indonesian Chamber of Commerce and Industry (Kadin). According to the Kadin, the government should tighten control over the distribution of refined  sugar to prevent the commodity which is imported to meet industry's needs from straying into the consumer market at industry's expense.         "The government has been  supervising it but not yet effectively enough so it must still be tightened.  We urge the police and other relevant agencies to increase supervision," Natsir Mansyur, chairman of the Permanent Committee for Trade and Distribution of the Kadin said.           He said that Kadin would form a sugar distribution supervision  team to assist the government in the supervision of sugar distribution to industry and consumers.          "We will form an internal team to assist supervision, and government officials can join this team," Natsir who chairs the Indonesian Wheat and Sugar Business Association (APEGTI) said.           In this case, Inayat Iman, director of the supervision of goods in circulation of the trade ministry, said that supervision over the distribution of sugar had been carried out well.          "We have sent a letter to the relevant agencies in the regions and the capital city to monitor sugar circulation in the market and based on their reports there was no refined sugar  in the consumer sugar market," he said.           However Natsir said that it was a reality that refined sugar that based on regulation could only be used by industry was sold in traditional markets in  Sulawesi, Maluku, Kalimantan and Sumatra. He said that businesses suffered a loss of some Rp30 billion due to the presence of refined sugar in consumer sugar  markets.          In Central Kalimantan for example, the absence of local sugar has caused the circulation in the market of refined sugar, like what was happening in Kapuas district.          The Trade and Industry Services of Kapuas district said refined sugar has been circulating in the consumption market because local sugar was no longer found on sales.          "Refined sugar circulated not only in Kapuas but also in all regions in Kalimantan because local sugar stocks are not available," Ferdinan Junarko of the industry and trade service said here on Thursday.          He said that based on the government regulation refined sugar could only be sold to industries and was not allowed to be sold in the public market for consumption.          Refined sugar has been in the market because the government did not provide local sugar so that traders were forced to sell refined sugar which was actually designed for industries.          There is suspicion that traders are keeping their local sugar stocks that caused scarcity in the market, as it can be found in Central Java.          According to Central Java's rice monitoring and control team (TPPH), it has recorded that about 32,000 tons of sugar were still kept and piled up in warehouses.          Antonius Tri Puji of the TPPH said that  off the 56,780 tons of imported sugar for Central Java, about 32,000 tons were still kept in a number of warehouses of state owned plantation firm PT Perkebunan Nusantara XI. Sugar was one of the commodities whose prices were now on the rise over the past few months.       Antonius said that high auction price of sugar in Central Java has caused the increase in sugar prices. The team recorded that at the sugar auction conducted on July 12, 2010 the price was Rp8656 per kg with the market price at Rp9,900 per kg.          The scarcity of consumption sugar in the market has led to traders to sell refined ones. In order to overcome the problem, legislators also urged the government to put the refined sugar in order.           Legislator Aria Bima said  the government should carry out a re-auditing of the distribution of refined sugar to see where the refined sugar so far had been channeled.          The government had better examine the portion of refined sugar for food and beverage  industries and supervise their distributors.          Aria suspected that refined sugar had so far strayed into the consumer sugar markets because its distribution was not well supervised. He also asked the government to provide a detailed report over  the amount of refined sugar which had strayed into the consumer sugar market.          Meanwhile,  chairman of the Indonesian Refined Sugar Association (AGRI) Melvin Korompis said he had never known before that refined sugar had strayed into consumer sugar markets.          Melvin suggested that the government set up a small team composed of representatives of inter-related sectors such as the Ministry of Industry and the Ministry of Trade. "This small team should supervise the distribution of refined sugar distribution," Melvin said.          Melvin said he would coordinate with other AGRI members to study the distribution networks and to learn how refined sugar could stray into the consumer sugar  markets in a number of regions.          In the meantime, Chairman of the Indonesian Sugarcane Growers Association (APTRI) H. Arum Sabil said  national sugar output this year is expected to fall 20 percent short of the government-set target of 2.9 million tons because of extreme climate change in recent months. The high rainfalls during the grand sugarcane harvest time had reduced the sugar content of sugarcane.          "Though the sugarcane harvested is abundant its sugar content declines because of too much water," he said.          With a population of about 230 millions Indonesia is a big sugar consumer needing about 3.8 million tons per annum. It needs some 2.7 million tons of sugar for direct consumption and 1.2 million tons of refined sugar for industries.          However, its own annual sugar output from about 60 factories only ranges between 2.7 million and 3 million tons, requiring it to import the balance.      ***2*** (T.A014/H-NG/H-YH) 23-07-2010 00:08: