Sugarcane farmers experience two strokes of ill luck. Production plummets thanks to pests in the dry season. To make it worse, sugar is sold at a low price.

Stocks of refined crystal sugar are almost at zero level because of the government’s delay in issuing import permits. This is a result of confusion over data and poor coordination between ministries.

Refined sugar has become scarce again ahead of the year-end because the government was slow to issue import permits. The stock of raw materials for the food and beverage industry is running low.

The government is formulating a presidential regulation to fast-track sugar self-sufficiency. The SOEs Ministry is fusing sugar mills into Sugar Co to boost production. However, the import facility given to PTPN III sparks allegations of monopoly.

One by one, the prices of food commodities increase. Inflation lurks just around the corner.

The government is to set up a sugar industry holding company to achieve self-sufficiency. Assets must not fall into the hands of rent seekers.

Perkebunan Nusantara (PTPN) will divest the assets of its subsidiaries engaged in the sugar business. A new company is being prepared to attract jumbo investors.

Inconsistency in the regulations governing sugar imports caused food and drink companies scrambling to find supplies. Investment projections could be affected.

The government issued permits to import raw sugar for the refined sugar industry in order to cover demand. This policy, however, is deemed insufficient to solve supply shortage for high-quality raw material suffered by a number of food and beverage companies.

Regulation guaranteeing the availability of basic material for the sugar industry has yet to be issued. Plans to limit importers remain a big question mark.