Govt Draws Up Regulation To Validate New Sugar Auction

Ditulis pada 29 September 2017 - 21:36

[JAKARTA POST, 29 September 2017 - Halaman 14]

The government is preparing a presidential regulation to validate the Trade Ministry’s plan to introduce a refined sugar auction for business-to-business (B-to-B) purchases, despite rising objections from businesspeople.Head of the Futures Exchange Supervisory Board (Bappebti), Bachrul Chairi, said the Office of the Coordinating Economic Minister had been working on a draft of the presidential regulation – which would regulate commodity auctions – for the past two years. “We have to wait for the presidential regulation so they (businesspeople) will stop questioning the auction” Bachrul said. Meanwhile, businesspeople have said the auction would lengthen the supply chain and increase sugar prices, as a result of the existence of a third party. An existing mechanism to monitor sugar transactions made the auction unnecessary. Rising objections from large firms have reportedly influenced the government to postpone the auction to January next year. However, Bachrul stressed the move was give authorities more time to better prepare a system, as well as to disseminate the program among micro, small and medium enterprises (MSMEs). Next month, The Trade Ministry will issue a new regulation to detail changes in the auction system based on recommendations from various parties, including the Business Competition Supervisory Commission (KPPU), the House of Representatives and the Corruption Eradiction Commision (KPK).