Upper Sugar Retail Price Aimed To Curb Inflation: BPS

Jakarta (Antara Bali) - The government's policy to set upper sugar retail price will help curb national inflation, particularly from food price hike, Chief of the Central Statistics Agency (BPS) Suhariyanto said.

"The policy is good to prevent sugar price from moving wildly so (all) consumers can afford it," he said here on Sunday.

He made it clear that food price hike contributed 1.21 percent to the 2016 inflation rate which reached 3.02 percent.

Hence, the policy is expected to create price stability, particularly if the government cut distribution chain from producers to consumers, he said.

Sugar producers and distributors have agreed to keep the upper retail price of white crystal sugar at Rp12,500 per kilogram which will remain in effect until December 2017.

If sugar price increases sharply, the government through the Coordinating Ministry for Economic Affairs will evaluate the policy.

To support the price stability program, the Trade Ministry has shortened the distribution chain from producers to consumers by encouraging the roles of state-owned companies, regional government-owned companies and the private sector in distributing sugar.

To shorten the distribution chain, the government also has streamlined import procedure, The Trade Ministry has allowed several factories to import raw sugar to produce white crystal sugar or consumer sugar.

Separately, Cucun Ahmad Syamsurijal of the Nation Awakening Party (PKB) faction in the House of Representatives (DPR) said the policy is in line with the government's nine key program called Nawacita and will be able to improve sugar trade in the country. (WDY)