THE STIPULATION OF PROCEEDS PRICE OF GRANULATED SUGAR PRODUCED BY FARMERS IN 2000
(Decree of the Minister of Forestry and Plantations No. 145/KPTS-VII/2000 dated June 7, 2000)
THE MINISTER OF FORESTRY AND PLANTATIONS,
Considering :
a. that pricing of proceeds price of granulated sugar produced by farmers in 2000 is intended to prevent sugar cane farmers from incurring losses, boost farmers'enthusiasm in planting sugar canes and raise the living standard of farmers as well as to protect interests of consumers, eventhough the trade in sugar is basically free in accordance with the market mechanism;
b. that in relation thereto, it is deemed necessary to stipulate proceeds price of domestic sugar production produced by farmers in 2000.
In view of :
1. Presidential Decree No. 355/M/1999 on the establishment of the cabinet for the 1999-2004 period;
2. Decree of the Minister of Finance No. 568/KMK.01/1999 on the stipulation of tariffs of import duty on rice and sugar;
3. Decree of the Minister of Industry and Trade No. 717/MPP/Kep/12/1999 on the revocation of trade control of import of sugar and rice.
Observing :
Results of the limited coordinative meeting on economy, finance and industry on March 15, 2000.
D E C I D E S :
To stipulate : FIRSTLY :
The proceeds price of granulated sugar produced by farmers in 2000 shall be Rp. 2,600 per kg.
SECONDLY :
In the case of local retail prices being lower than the cost price of sugar in the First Dictum, farmers/groups of farmers giving up their canes to sugar mills for processing by a production sharing system, shall receive 90% of their sugar production in the form of money from sugar mills buying canes from cooperatives/rural unit cooperatives (KUD) which channel credits at the proceeds price as meant in First Dictum, after being calculated by production credits received from creditor banks, while the remaining of 10% is given in kind.
THIRDLY :
Farmers/groups of farmers selling their canes to sugar mills by a Cane Purchasing System (SPT) of the output pattern shall be paid at a price calculated on the basis of the proceeds price of farmer sugar in First Dictum, and farmers/groups of farmers obtain sugar in kind as high as 10%.
FOURTHLY :
Portions of sugar belonging to farmers shall be bought through PT Perkebunan Nusantara II, PT Perkebunan Nusantara VII, PT Perkebunan Nusantara IX including Bapippundip, PT Perkebunan Nusantara X, PT Perkebunan Nusantara XI, PT Rajawali Nusantara Indonesia including PT Kebon Agung and PT Perkebunan Nusantara XIV.
This decree shall come into force as from the date of stipulation and be retroactive to January 1, 2000.
SIXTHLY :
This decree shall only be effective from sugar produced by farmers in 2000.
Stipulated in Jakarta On June 7, 2000
THE MINISTER OF FORESTRY AND PLANTATION sgd.
