Selasa, November 5, 2024

Intensification and/or Extensification of Sugar Production Introduced as New Mandatory Criteria for Importers of Raw Crystal Sugars

The Minister of Industry (“Minister”) has introduced a new framework on guarantees for the fulfillment of raw material requirements for the sugar industry through the issuance of Regulation No. 47 of 2024 (“Regulation 47/2024”), which has been in force since 18 October 2024. Upon entering into force, Regulation 47/2024 simultaneously repealed and replaced the following legal frameworks: 1) Regulation of the Minister No. 3 of 2021; and 2) Regulation of the Minister No. 10/M-IND/PER/3/2017.
In addition to newly reaffirming that industrial sugar companies (“Companies”) are required to prioritize the utilization of domestically made raw materials, Regulation 47/2024 also redefines Companies as follows: 1) Sugarcane-based Companies: integrated into sugarcane plantations and only produce white crystal sugar; and 2) Refined crystal sugar Companies: not integrated into sugarcane plantations and only produce refined crystal sugar.
The above-outlined Companies are permitted to import raw crystal sugar if the relevant domestic materials are unavailable and/or inadequate in terms of the fulfillment of production requirements. However, said imported raw crystal sugar is only permitted to be utilized as raw materials during the production of white crystal sugar or refined crystal sugar by the respective Companies.
Regulation 47/2024 newly outlines that any sugarcane-based Companies that are specifically looking to import raw crystal sugar must meet the following criteria: 1) Must be new Companies; 2) Must work to improve their production capacities; 3) Must work to revitalize their machinery/tools; or 4) Must increase their sugar production rates through means of intensification and/or extensification. The aforementioned intensification and/or extensification initiatives may be carried out in sugarcane plantations that belong to the relevant Companies or the general public.

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*Syarat dan ketentuan berlaku

The Minister of Industry (“Minister”) has introduced a new framework on guarantees for the fulfillment of raw material requirements for the sugar industry through the issuance of Regulation No. 47 of 2024 (“Regulation 47/2024”), which has been in force since 18 October 2024. Upon entering into force, Regulation 47/2024 simultaneously repealed and replaced the following legal frameworks: 1) Regulation of the Minister No. 3 of 2021; and 2) Regulation of the Minister No. 10/M-IND/PER/3/2017.
In addition to newly reaffirming that industrial sugar companies (“Companies”) are required to prioritize the utilization of domestically made raw materials, Regulation 47/2024 also redefines Companies as follows: 1) Sugarcane-based Companies: integrated into sugarcane plantations and only produce white crystal sugar; and 2) Refined crystal sugar Companies: not integrated into sugarcane plantations and only produce refined crystal sugar.
The above-outlined Companies are permitted to import raw crystal sugar if the relevant domestic materials are unavailable and/or inadequate in terms of the fulfillment of production requirements. However, said imported raw crystal sugar is only permitted to be utilized as raw materials during the production of white crystal sugar or refined crystal sugar by the respective Companies.
Regulation 47/2024 newly outlines that any sugarcane-based Companies that are specifically looking to import raw crystal sugar must meet the following criteria: 1) Must be new Companies; 2) Must work to improve their production capacities; 3) Must work to revitalize their machinery/tools; or 4) Must increase their sugar production rates through means of intensification and/or extensification. The aforementioned intensification and/or extensification initiatives may be carried out in sugarcane plantations that belong to the relevant Companies or the general public.

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