State firm launches market operations to stabilize sugar price

Jakarta (ANTARA News) - State-owned sugar cane plantation company PT Rejawali Nusantara Indonesia (RNI) is launching sugar market operations in Jakarta, Bogor, West Java, on May 12 and 13 to stabilize sugar prices.

"Sugar prices in Jakarta and its satellite towns remain high in the face of the fasting month of Ramadan next June. With market operations we hope the sugar prices will stabilize after we offer low prices to the people," PT RNI President Director Didik Prasetyo said at the Pasar Palmerah market here on Thursday.

Didik said based on his observation the price of sugar in modern markets is still about Rp16 thousand per kilogram. The price is still very high and has burdened the people. The government has set the target to bring down the sugar price to Rp11,500 per kilogram.

"We are determined to help the government bring down the price to that level. Now, we are launching a market operation. We will sell it at Rp12,500 per kilogram," stated Didik.

The market operations will only be conducted for two days, but RNI is committed to launching such operations when needed during the fasting month as well.

"The same operations will also be launched in East Java. Although the sugarcane milling season will start in the third week of May, RNIs sugar stock is still adequate for market operations," the RNI President Director noted.

In order to reach the target in its low sugar price operations, RNI applies a number of strategies, with one of them being not allowing people to purchase more than five kilograms of sugar for each family. This has been done to prevent speculative buying for resale of RNI sugar.

During the launch of the operations, RNI makes available 100 tons of sugar, which are released through eight points in Jakarta and two points in Bogor (West Java).

The market operation points in Jakarta are the Pasar Inpres market in Klender, the Pasar Rawamangun market, the Pasar Pulogadung market, the Pasar Perum Klender market, the Pasar Palmerah market, the Pasar Grogol market, and the Kopro and Pasar Cengkareng markets.

The market operations in Bogor take place at the Pasar Bogor and Pasar Anyar markets. (*)