Sugar Price Increases to IDR 17,500/Kg, Here’s How Retail Entrepreneurs Respond

JAKARTA – Association Retail Entrepreneur Indonesia ( Aprindo ) is still considering increasing the supply of sugar in the modern market, after the National Food Agency (Bapanas) extended the relaxation of the government’s reference price (HAP) sugar at the consumer level to IDR 17,500 per kilogram (Kg).

Aprindo Chairman Roy N Mandey said that entrepreneurs will only buy and increase the stock of consumption sugar if the reference price is in accordance with the entrepreneur’s expectations. This means that the HAP set must be below Rp17,500 per Kg, or cheaper.

“In retail, the indicator is when our purchase price, our HPP can be below the reference price, the expected price. Indeed, the reference price can still move, unlike the highest retail price,” said Roy in the IDX Channel Market Review session, Monday (1/7/2024).

“But in terms of retail management, when we buy below the reference price or the expected price, of course we will definitely buy it and it will definitely be available,” he explained.

The availability of sugar and other commodities in the retail market is indeed based on the purchasing power of its owners. Roy admitted that entrepreneurs cannot possibly buy commodities at high prices and then sell them cheaply.

“The point is, it is impossible for us to buy at a loss, buy below the price then sell above it, how? Who wants to pay for labor and also costs in retail, corporate, and other costs. This is certainly our calculation,” he explained.

Roy noted that retailers always consider their market or consumers. Where, the selling price of basic ingredients is expected to remain stable.

“And consumers always hope that the sugar in retail stores will not run out, they will certainly come to retail stores to shop. Then also stable prices. This is the desire of consumers that we always bring to the government,” he said.

Aprindo considers that extending the relaxation of HAP for consumer sugar is inappropriate at this time because the price is still fluctuating.

“What is important here is, as Soemitro (APTRI General Chair) said earlier, the reference price is actually not adequate at the moment because the price fluctuates,” said Roy.

“The price now if milled of course if the law of economics says the supply is sufficient, the demand remains, then the price tends to be stable. But on the contrary, the supply is lacking, the demand will fluctuate,” he explained.

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