Study Of White Crystal Sugar Distribution System In Indonesia

Abstract

From 33 provinces in Indonesia only 9 provinces that have white crystal sugar mills, only three of the nine provinces that surplus. Provinces that lacked sugar filled from the provincial surplus or import. Sugar import provisions set out in Kepmendag. No. 19/M-DAG/PER/5/2008 about amendments Kepmenindag. No. 527/MPP/Kep/9/2004 aboutthe Import Sugar. While the sugar trade between islands arranged through Kemenperindag. No. 527/MPP/Kep/9/2004. This regulation provides that type of sugar that may be traded between islands, the goal is to fulfil the needs of nonsugar producers regional, however, because of Indonesia's vast territory and scattered in the islands led to the cost of transportation and distribution to be expensive. This leads to high prices and or sugar is not available, and eventually many sugar illegal trading occurs mainly in Kalimantan, Riau and Aceh. Another effect is the seepage of refined sugar for household consumption. This problem arises because the distribution of sugar is controlled by a group of businessmen. Therefore it is necessary to compensate the agency gets state mandate to maintain price stability and supply of sugar as mandated by Law No. 18 in 2012. Along with the system it is necessary for the effective distribution and transportation, such as cutting the distribution chain; the port’s white crystal sugar importshould beisthe nearest portto thearea that needsthe white crystal sugarand minusthe white crystal sugarregionspreferablyfilledbysurplusareasnearby