Every time a plan to import sugar and salt is announced, we question the government\'s commitment to achieve self-sufficiency, especially in sugar production. The targeted time for achieving sugar self-sufficiency has been revised several times. In addition, there are allegations that groups are seeking benefits from the sugar business.
Regarding salt production, until now, according to the Indonesian Salt Farmers Association, the allocation of 1.9 million tons of national salt production is still uncertain (Kompas, 2/1/2020).
The government has repeatedly stated that it wants to reduce imports and substitute them with domestic products. Sugar and salt are commodities that can be produced by farmers in the country. Salt is even produced by small farmers.
Reducing sugar and salt imports will help reduce the trade deficit while providing employment to many people, especially for low-income groups.
A salt farmer in Demak regency, Central Java, Hamzawi (left), assisted by a worker, Zaetun, in 2019 checks on the condition of 200 tons of salt stock in his warehouse in Kedungmutih village, Wedung district. The yield of the 2017 salt harvest was valued quite high in the market at Rp 200,000 per quintal. The salt stocks owned by farmers in the Wangun area are estimated at more than 900 tons. Salt farmers hope that the government will not import salt when farmers start production in early April.Although local sugar and salt production is economically less efficient compared to imported products, both commodities have a greater social impact. The government needs to prioritize the two commodities because it involves a lot of workers and many low-income community groups.
Our salt and sugar production is economically not competitive. However, such a weakness can be easily overcome through the use of technology at the farm and factory level.
Indonesia has a long history in the sugar industry, even once being one of the largest sugar producers in the world, competing with Cuba in the world market. The Indonesian sugar industry has been proven to be able to compete technologically, economically and socially through the large number of people involved.
At present, the government needs to thoroughly evaluate and monitor the supply and demand balance of sugar and salt for large and micro industries as well as households.
At present, the government needs to thoroughly evaluate and monitor the supply and demand balance of sugar and salt for large and micro industries as well as households. Data from Statistics Indonesia (BPS) indicates that the difference between production and demand for sugar in 2020 reaches 2.7 million tons, while the government has set the import quota for raw sugar of 3.2 million tons.
The food and beverage industry and other industries can be encouraged to export by by giving them a facility to import raw sugar and salt to meet their own needs. Going forward, Indonesia needs to immediately issue a road map for the sugar and salt industry over the next five years so that we will be able to consistently build resilience at home and encourage exports. If needed, Indonesia can also use a barter trade scheme with its trade partners. If such programs are consistently implemented, various government goals can be achieved at once.