Producers of doubled refined sugar required to use local cane sugar.
The government will require producers of doubled refined sugar to
use locally produce raw sugar in three years after the issuance of their
licenses. On the other hand the government approved the program to
restructuring sugar factories with an investment of Rp 3.46 trillion to
improve the efficiency of sugar factories. Deficit in the country's
sugar supply is growing now about 1.2 million tons a year partly because
of inefficiency of sugar factories, Industry Minister Fahmi Idris said.
The industry ministry and the agriculture ministry will issue a joint
decision requiring producers of double refined sugar to use locally
produced raw cane sugar, Fahmi said. Until now the country's
producers of double refined sugar import feedstock in the form of raw
sugar. The country's sugar consumption was estimated to reach 4.6
million tons last year as against production of only 2.3 million tons.