ANNOUNCEMENT 07 Aug 2014

In August 2014, the government of Indonesia announced a change in production support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
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 SECTORS

 

AFFECTED PRODUCTS