Update Indonesia's Evolving Sugar Demand for Consumption and Salt Needs for Industry

KONTAN.CO.ID - JAKARTA. The effort to fulfill the needs of industrial salt and consumer sugar domestically still faces obstacles.

The CEO of ID FOOD, Frans Marganda Tambunan, revealed that currently, the import of industrial salt and consumer sugar is still being carried out to meet domestic needs.

Frans explained, that besides food and beverages, salt is also needed for industries including mining and fertilizers.

His party continues to increase the capacity of the salt processing plant for food and beverages. Currently, the total capacity of the processing plant is said to reach 57 thousand tons per year.

"We will continue to increase it because there is still a large gap. Currently, we import about 3 million tons every year," said Frans in the "Ngopi" BUMN event, on Tuesday (10/10).

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Another effort made is to establish synergy with other state-owned enterprises related to processing salt into caustic soda and ice soda on salt pond land in Sumenep, Madura.

Frans revealed, that the obstacle to fulfilling domestic needs also occurs for the commodity of consumer sugar.

According to him, currently, ID FOOD is focused on meeting the consumption needs of sugar domestically. However, until now there is still a shortage of supply of about 800 thousand tons to 1 million tons each year that must be met through imports.

"This year we together with PTPN got the assignment of total stabilization of 500 thousand equivalent to white crystal sugar," added Frans.

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So far, the realization has been carried out as much as 107 thousand tons. His party is still waiting for the government's decision in a limited coordination meeting to be able to complete the import this year.

Frans explained sugar imports are now faced with the challenge of finding it difficult to find supplier countries. India, which has been the main supplier, has decided not to export sugar until next year. Meanwhile, supplies from Thailand are considered not available enough. The most likely market is Brazil.

"So we also encourage the decision of stabilization to be obtained as soon as possible," said Frans.

Especially since the milling season will end soon. Prices are predicted to surge after the milling season ends.

In addition, ID FOOD is also trying to chase the target of fulfillment in preparation for the fasting month and Eid next year.

Frans explained, the quota for imports has been set at 250,000 equivalent to raw sugar or about 230 thousand white crystal sugar. So far, the realization has reached 107,000.

"The quota is already there because it is the result of last year's decision, just waiting for the decision permit," explained Frans.

The total budget for about 125 thousand tons of this sugar is estimated to reach Rp 1.5 trillion.