KONTAN.CO.ID - The Indonesian government has agreed to lower the tariff on Australian raw sugar to 5 percent from 8 to 13 percent when the Industry Ministry issues a related regulation in the next two weeks.

Trade Minister Enggartiasto Lukita said there would not be an increase in the raw sugar import quota this year but the policy would provide options for importers to buy more from Australia, in addition to Thailand, the biggest sugar exporter to Indonesia.

“The raw sugar tariff [for Australia] will be 5 percent, the same rate we apply to Thailand, so (Australian sugar) can be more competitive. It is important because we don’t depend only on one country,” he said at a press conference during the visit of Australian Minister for Trade, Tourism and Investment Steven Ciobo to the ministry on Wednesday.

The new policy will be included under the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA).

Indonesia depends on raw sugar imports, mostly from Thailand, to fulfill its household and industrial needs. This year, the ministry estimates that the country will import 3.5 million tons of sugar out of the national demand of 6.2 million tons.

To lessen its dependence on imported sugar, Indonesia will introduce various incentives for local sugar industry players and planters.

Editor: Rizki Caturini