Total sugar consumption in Indonesia will rise more than 3 percent to an estimated 5.17 million tonnes this year, a trade ministry official said on Tuesday. Southeast Asia's largest sugar consumer used 5.01 million tonnes in 2010, Gunaryo, director general of domestic trade at the trade ministry told a parliamentary meeting.
In a more detailed breakdown for 2011, Gunaryo said total sugar consumption would consist of 2,799,724 tonnes of white sugar, used mainly for household demand, and 2,370,375 tonnes of refined sugar, used mostly in industry. Last month, industry body the Indonesian Sugar Council (DGI) said Indonesian demand for sugar would hit 4.6 million tonnes this year, little changed from a year ago. Industry forecasts often differ from Indonesian government figures.
Indonesia, which is expected to produce 2.7 million tonnes of white sugar in 2011, is targeting self-sufficiency by 2014. Domestic Indonesian output is only used for household demand and home-based industry. Indonesia was once the world's second-largest sugar exporter after Cuba in the 1930s. But ageing sugar mills, a vast network of smallholders and an influx of cheaper imported sugar put pressure on local production.
Indonesia's government influences prices by issuing import permits for different types of sugar, effectively restricting the inflow of cheaper grades into the country. Gunaryo said the government had issued import permits for 37,958 tonnes of refined sugar in 2011 to 13 food and beverage firms. To date however, imports of raw sugar totalled only 20,989 tonnes, he added.
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