The Indonesian government imports sugar from Thailand and India to maintain price stability and meet national needs. However, the sugar import process faces several obstacles, such as the difficulty of simultaneously meeting national demand and maintaining stable prices, as well as the limited availability of ships with 20,000–30,000 tonnage capacity. TCI (Transcon Indonesia) serves as a reliable consolidator with affordable costs and extensive experience, offering exceptional customer service so that sugar imports can meet demand at stable prices and sufficient stock levels.
Sugar: A Basic Need in Indonesia
Sugar is one of the essential commodities in Indonesia. Unfortunately, recent domestic stock and production levels have failed to meet national demand, leading to rising prices. To address this, the government has opted to import sugar from Thailand.
In fact, imported sugar has already arrived at the Port of Tanjung Priok in North Jakarta. This initiative reflects the government's serious effort to ensure national sugar availability and price stability, especially during peak seasons such as before Eid.
However, these efforts have not been without challenges. What are the main obstacles in this sugar import process?
Challenges in Sugar Imports to Stabilize Prices
While sugar imports are a promising government solution, they face some hurdles, such as:
1. Meeting National Demand While Maintaining Price Stability
Sugar from Thailand and India is imported with the dual goal of fulfilling national demand and keeping prices stable. This decision is based on consumer and producer needs.
To achieve this, the government plans to re-evaluate the base purchase price (HPP) of sugar at the farmer level, currently around IDR 11,500 per kilogram. They also aim to review the retail price ceiling (HET) to ensure balance between producers and consumers.
Accurate data becomes crucial in this process—specifically, up-to-date information on consumption and production.
Unfortunately, such accurate data is hard to come by, as the government must consider many factors, including rising production costs like fertilizer and labor, as well as the limited access to subsidized fertilizers for sugarcane farmers to meet the HPP.
Balancing national needs with price stability is thus a major challenge. The government must work harder and collaborate with multiple stakeholders to ensure data accuracy—without neglecting either producers or consumers.
2. Limited Volume of Imported Sugar Arriving
Another issue is the small volume of sugar imports, largely due to the limited availability of ships with 20,000–30,000 ton capacity.
As a result, imported sugar may arrive late, overlapping with the local sugarcane milling season. This would disrupt pricing during harvest and milling, ultimately harming farmers.
Thus, it is vital for the government to find a solution—one of which is to work with a capable logistics consolidator.
TCI's Role as the Right Consolidator
As discussed earlier, the challenges in executing the government's sugar import plan are real—but manageable with the right support.
In this case, TCI (Transcon Indonesia) stands out as the ideal consolidator for smooth sugar import operations. As a trusted e-logistics company, Transcon Indonesia offers reliable logistics services to industries at affordable costs.
Transcon Indonesia has developed over 70,000 square meters of its own facilities and employs more than 160 staff. The company also provides customs clearance, quarantine facilities, and public spaces for container and cargo handling—paired with invaluable experience.
TCI’s experienced management team ensures outstanding customer service, backed by cutting-edge technology.
With this technology, Transcon clients can access real-time product information 24/7. This capability is precisely why TCI is the right consolidator to help ensure sufficient sugar stock at a stable price through smooth and efficient import processes.
Source: Kompas.id – April 1, 2023 – Sugar Imports Require Accurate Data