GOVT'S PLAN TO IMPORT RAW SUGAR NOT APPROPRIATE

Surabaya, E Java, 12 (ANTARA) - The government's plan to issue a license for the import of 180,000 tons of raw sugar to cover the unused capacity of sugarmills, is considered inappropriate and could become a boomerang, an official said.

Deputy Secretary General of the Indonesian Sugar Experts Association (Ikagi) who is also corporate secretary of PT Perkebunan Nusantara XI, Adig Suwandi made the statement to reporters in Surabaya, Friday.

"In overcoming the current sugar crisis, the government should not issue a policy that would trigger panic, so in the future it will not distrust the sugar industry and farmers," he said.

The policy which was theoretically very good, was initially aimed to give an added value to the raw sugar processing in Indonesia.

However, if such policy is conducted at an inappropriate time, it will become a boomerang and burden to the importing sugar company, he cited.

Another problem is that most of the sugarmills handled by PT Perkebunan Nusantara (PTPN) will stop their milling operation in October, 2009, Adig Suwandi said.

In the meantime, the deputy to the chief economic minister for agriculture affairs, Bayu Krisnamurthi, said here on Thursday that planned imported sugar in the near future is intended as a stock in the first months of 2010.

"It seems that according to our calculations we still need to increase our sugar imports to raise sugar stock allocation in the first five months of 2010," Krisnamurthi said.

He said that a number of analysts predicts sugar price at the period would still experience turmoil. "At the same time, Indonesia is not producing sugar because it is not a milling season," he added.