Coronavirus means working from home for many. Indonesia recently changed the color-grading standard known as the International Commission for Uniform Methods of Sugar Analysis (ICUMSA) from 1200 to 600 to allow raw sugar … Read also:  India sugar shippers target ‘golden opportunity’ in Indonesia, “Mills just need to shut white sugar production and start making raw [sugar] in the next two months before the crushing season is over.”. “This has been four years. Read the full article in our June 2020 report. The most recent published outlooks for global economic growth and global trade are more pessimistic than their earlier versions, with the main reason being that there is no quick solution to the coronavirus (COVID-19) crisis. And, the closer we get to 2021, the less rosy outlooks are becoming for next year. Indonesia Economic Outlook 2020 4 “We predict that dovish views from both 100the Fed and other central banks will continue in 2020. From mid-2009 until August 2011, The ministry’s acting director of beverages, tobacco and refreshments, Supriadi, said it has been carrying out a quantitative impact analysis with input from industry associations and industry players. Just as the world’s top sugar traders forecast a global shortage of the commodity, No. Tweet. Indonesia recently changed the color-grading standard known as the International Commission for Uniform Methods of Sugar Analysis (ICUMSA) from 1200 to 600 to allow raw sugar shipments from India. “We’re trying to be more realistic. Earlier this year, in April 2020, the International Monetary Fund (IMF) released the April edition of its flagship World Economic Outlook report. } We use cookies to ensure that we give you the best experience on our website. Less domestic overhangs in 2020 but higher earnings growth is the key for re-rating; 2020 JCI target is 6,600, pegged to +1SD of mean PE; Themes: New economy, government … A subsequent hearing by parliament’s finance commission last week moved the drinks and vehicles levy proposals a step closer to law. Sign up to our free newsletter and get the latest news sent direct to your inbox. You need to be signed in with our Sugar Pro or above to view this content. Indonesia 2020 Market Outlook: When the growing gets tough. Processors will probably buy 3.3 million tons of raw sugar from abroad, up from 2.6 million tons this year, according to Bernardi Dharmawan, chairman of the Indonesia Sugar Refiners Association. In Indonesia, finance minister Mulyani Indrawati decided to include the sugar tax proposal as part of a wider one that will also impose environmental tariffs on polluting vehicles and plastic waste. Key summary points . If approved, the proposed import could help prevent a price spike during the Idul Fitri holidays in May from a sugar supply shortage, as consumption typically skyrockets during the festivity, including sugar. $(document).ready(function() { He also acknowledged that production would fall, which would affect growth in the beverage industry. To purchase this report, please send an email to info@indonesia-investments.com or a WA text message to +62(0)8788.410.6944 for further information. According to the latest estimates from the Agriculture Ministry, white crystallized sugar consumption in the country stood at 2.8 million tons in 2019, while local production is projected to be around 2.2 million to 2.3 million tons. Subscribe "It's a barter. Indrawati’s proposal is to levy the lower rate of excise tax on bottled tea drinks with lower sugar content, and the higher rate on concentrated coffee, carbonated soft drinks and energy drinks. “Does this country want to make its people prosperous or make them suffer instead? A list of the most popular web browsers can be found below. << /Length 5 0 R /Filter /FlateDecode >> It was released more-or-less at the beginning of the COVID-19 crisis when semi-lockdowns were imposed across the world (while China was near its full recovery). "The sugar milling season will start in late June or early July. Group Research / December 19, 2019. But some say it's easier said than done. 4 0 obj Gita Gopinath, IMF Chief Economist, remarked that for the first time since the Great Depression, both advanced and emerging market economies will be in recession in 2020. Is this [import plan] aimed at getting rid of sugarcane farmers, so they can continue to import?”. We cannot be naive and see growth, when we don’t exactly know the consumption number,” he said. The market for soft and energy drinks has been seeing rapid growth, with sales expected to have reached US$12.9bn last year. The rates of diabetes and obesity have both almost doubled from 2007 to 2018, according to government figures. The report was, however, outdated within a few days as it presented a much too positive picture about global economic growth in 2020, and a much too optimistic picture of a quick and sharp recovery in 2021. Supplying information to the global sugar and ethanol industries for a quarter of a century. He also said the new levy would discourage investment in the Indonesian sugary drinks industry and steer the money into neighbouring countries like Singapore or Malaysia. In this photograph taken on December 7, 2018 Indian labourers harvest sugarcane in a field along the Lucknow to Faizabad highway in northern Uttar Pradesh state. Cropping. Free newsletter Bank Indonesia currently also pledges for more easing to come as it shifts focus to support growth.” rate, thus triggering the flow of portfolio back to Indonesia. The local beverage industry has pushed back strongly against the plans. return vOut; They are open to buying supplies from India once the Indonesian government has adjusted the so-called Icumsa level, a standard set by the International Commission for Uniform Methods of Sugar Analysis, Dharmawan said. Now 2% of Indonesians aged 15 and over suffer from diabetes, while the number of obese adults has risen to 21.8%. if(i!=(aTags.length-1)) We have only an assumption and we need to conduct a thorough survey,” Dharmawan said. A dip in Indian and Thai sugar … Raw sugar prices rose to above 15 cents a pound at the start of November, the highest level since February 25th and more than 60% higher from April’s near 12-year low, lifted by supply disruptions. Still, that doesn’t signal much of a change in refined production, which will stay at around 3 million tons, he said. Energy & Sports, From mid-2009 until August 2011, Unabashed at setting out the motivation for the tax as health and revenue in equal parts, the Indonesian treasury believes the new taxes could raise revenue of up to INR6.25 trillion (US$450m). Price per edition: • IDR 150,000• USD $10• EUR €10• SGD S$15, Voting possible:  15 April 2020 12:49 - 01 February 2021 00:00, Please sign in or subscribe to comment on this column, - Indonesia Enters Economic Recession in Q3-2020, 2020 Edition (2nd Half): the Great Islamic Bank Merger, Economic Growth Update: Outlook for Indonesia and the World Remains Uncertain, Economy of Indonesia Enters Recession: GDP Contracts 3.49% in Q3-2020, Economic Update: Indonesian Policymakers Finally Become Realistic in Terms of 2020 Outlooks, Indonesia Investments' August 2020 Report - In Search of a Vaccine, Indonesian Economy Under Pressure in Q1, Bad Omen for GDP Growth in Remainder of 2020, Economy of Indonesia Under Pressure: GDP Growth at 2.97% in Q1-2020, Consumer Price Index; After 3 Straight Months of Deflation, October 2020 Brings Mild Inflation, Indonesia Investments' Subscriber Update - US Elections & Indonesia-US Relations, Indonesia Investments' Subscriber Update - Indonesia Enters Recession, Indonesia Investments' Economic Update - October 2020 (2nd Half) Report, Copyright © Van der Schaar Investments B.V. Delft The Netherlands. Download The Essential Guide to Tethered Closures, Liquid Immunity with Hawaiian Farm Grown BioAstin®, Reduce Sugar | Total Sweet Solutions from Sweegen, Bali Hai expands capacity with Sidel complete can line, Sign up to our free newsletter and get the latest news sent direct to your inbox, Processing Equipment & Systems, Automation, Control, Packaging & Packing Materials, Containers, News & Analysis for the Beverage Industry. To find out more about how we use cookies please see our. Current stocks in Brazil, the world’s leading producer and exporter, are low and a tight domestic market between-harvest period from December to March is expected. Most Indian mills make raw sugar with an ICUMSA of less than 800 and could not ship to Indonesia, which had a level for imported sugar of 1,200. Earlier this month, the Coordinating Economic Ministry already agreed to import 495,000 tons of nonindustrial raw sugar from India to meet domestic demand. Triyono went as far as to say the proposed tax would eventually lead to 120,000 drinks industry layoffs. Subscribe to one of our Membership Plans to access this content plus further features, including: Tags: infrastructure, News excerpt, politics, Tags: Corporate, Production, News excerpt, farmers, Tags: logistics, News excerpt, coronavirus, demand. Indonesia is now the world’s second-largest importer of wheat and biggest consumer of palm oil, part of which is used in an ambitious biodiesel program. * Indonesia expects nine new sugar mills to start operation in 2020, Agriculture Minister official Syukur Iwantoro told reporters on Wednesday. Indonesia might be taking a novel approach to implementing a sugar tax: if a proposal in front of parliament goes ahead, it will lump an additional levy on soft drinks in with environmental protection measures to fill a gaping hole in public finances. This leaves a space of around 500,000 tons for consumption-ready imported sugar if production is similar this year. Indonesia is sugar consumption drop as a surge in coronavirus puts dampeners on out-of-home eating and hits logistics, according to Bloomberg. Adhi S Lukman, chairman of the Indonesian Food & Beverage Association, took the view that the proposal would jack up prices and hurt people's purchasing power. It added that the COVID-19 crisis could be much worse than the Great Depression as the COVID-19 pandemic is causing an unprecedented drop in global activity, while the global labor market has taken a catastrophic hit, global consumer spending is plunging, and companies have significantly cut back on business investment. Optimism already building up for Indonesian equity markets as worries of domestic overhang fade away. AGI executive director Budi Hidayat also cast doubt on the necessity of more imports from India, with both the Office of the Coordinating Economic Minister and Bulog having put forth import initiatives. Share. Aa . Indonesia might be taking a novel approach to implementing a sugar tax: if a proposal in front of parliament goes ahead, it will lump an additional levy on soft drinks in with environmental protection measures to fill a gaping hole in public finances. Sugar demand from food and drink manufacturers is stable, Dharmawan said in Jakarta on Wednesday. As a few months have passed by, the Washington-based institution has now revised its outlook in its latest update titled: ‘World Economic Outlook Update, June 2020: A Crisis like No Other, An Uncertain Recovery’. The duty on plastic bags has been returned to the government for amendments. This will make the city-state an outlier in sugar control, though the specifics have not yet been revealed. Allocations for the first half will account for 60% of the total quota to meet rising demand for Eid al-Fitr in May. Meanwhile, India has expressed eagerness to resume shipments of its sugar to Indonesia after a long hiatus and a severe drought cut production in Thailand, normally the main supplier of raw sugar to Indonesia. On the contrary, there is a high degree of uncertainty about when business can resume as usual. It speaks volumes for a country with a strong awareness of health but low concern for it that the beverage policy was cloaked within the more headline-grabbing announcements last week.

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