IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 08 Aug 2014 | Removal date: open ended
Still in force

Production subsidy

On 7 August 2014, the Indonesian Ministry of Trade announced in regulation 45/M-DAG/PER/8/2014 it raised the farmer benchmark price (Harga Patokan Petani; hereinafter: HPP) for this year's milling season of white sugar from IDR 8'250/kg (set by regulation 25/M-DA/PER/5/2014) to IDR 8'500/kg.
The HPP is set for each year's milling season by the Ministry as the benchmark price. If market prices fall below the given price, the Indonesian International Bureau of Logistics (BULOG) is allowed to buy the sugar directly from the farmers at the given HPP, creating indirectly an agricultural subsidy.
The regulation came into force on 8 August 2014 and will apply until the next milling season in Indonesia (art. 2(2) of 45/M-DAG/PER/8/2014).
 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

235 Sugar & molasses
1701 Cane or beet sugar and chemically pure sucrose, in solid form.
170113 Cane sugar specified in Subheading Note 2 to this Chapter
170114 Other cane sugar
170199 Other

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