Indonesian people shocked. Sugar price nowadays reach Rp. 10.500. Even in Ramadhan season, this price booming seems unexplainable. But, it still interesting that how people blame world market for sugar booming
There was a dilemma. Like other food commodity, sugar farmer feel normal sugar price are too low. On January 2009 (Kompas, 27 August 2009) price of rafinated sugar only $310 per tons. Fantastically, in 24 August price bounce up to $615 per tons. World price fluctuation is pointed out as main factor, which lead domestic price going higher. Sugar farmer looked happy, not so consumer (also me). Just like eating simalakama fruit, our ancestor said.
So, it's fair to blame the world market? It is true that our circumstance will get better if we going to autarky? I don't think so. Sucofindo co. assumed that our domestic production was only 2,74 million ton per year. Our Industrial (middle-higher scale) consumption is about 1.054.121 ton per year. At household level, we consume 11,86 kg per capita (since we have 200 million people, it means we consume 2.372.000 ton per year). From those sector, exclude household industry and small-scale industry, we need 3.426.121 ton per year. The only way is doing import.
Increasing import tariff idea and stop sugar import truly unrealistic. For short-run solution we need import. Further, we must consider on how we strengthen our supply side (more productivity) than consider on banning sugar import or close our sugar trade.
Yes, it's like eating simalakama fruit, but this one taste sweet
Showing posts with label international. Show all posts
Showing posts with label international. Show all posts
Friday, August 28, 2009
"Simalakama" Taste Sweet
Friday, July 31, 2009
China and America, Yuan and Dollar: The Saga Keep Continues

Few weeks ago, Timothy Geithner has come to visit China for, ehmm, I called it a concert, Hu Jintao listening, sounds like an old song. Sounds like Beatles:
"...
Uncle Sam comes to China
Speaking words of wisdom , let it float.
Let it float, let it float.
This will be an answer, Let it float
Let it float, let it float,
Whisper words of wisdom , let it float."
Adapted from Let It Be (The Beatles), click here for the original lyrics
Wednesday, July 8, 2009
Consider this before you go abroad for holiday

Update: my friend Rangga Cipta remind me that the list could be a good evidence for Japan's dumping policy.
Update.2: an article taken from Kompas
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