SUGAR AUCTION SYSTEM: These Are the Rules for Business Actors

Chairman of the Commodity Futures Trading Regulatory Agency [Bappebti] Bachrul Chairi said that industries that have contracts do not need to follow the auction process. They are only required to report to the auction system.

“We are only asking large industries that already have contracts to report,” he said when contacted by Bisnis, Wednesday (27/9/2017).

Bachrul explained that the government wants transparency in the use of refined sugar. Thus, a more accurate national sugar balance sheet data can be compiled in the future.

At present, the government requires a third party as auction organizer to assist in the data collection process for the distribution of refined sugar. This is due to the government’s budget constraint.

In the meantime, Chairman of the National Sugar Transparency Forum Supriyanto Sardjowikarto said that SMEs do not have a problem accessing refined sugar. Usually, the entrepreneurs order the raw materials collectively through a cooperative.

“Now the price that we pay includes tax and transportation costs, but with an auction, the costs will increase because the aforementioned costs are not included,” he explained.

Source: http://industri.bisnis.com