Authorities seize 1,612 tons of refined sugar

Andi Hajramurni , The Jakarta Post , Makassar | Tue, 09/09/2008 10:18 AM | The Archipelago

Detectives of the National Police Headquarters working in tandem with the Trade Ministry confiscated 1,612 tons of refined sugar belonging to a distribution company in two warehouses in Makassar on Saturday evening.

The seized hoard included sugar produced by four firms -- Inti Manis, Jawa Manis, Sentra Usahatama Jaya and Angel Products.

Didi Rinaldy, a team member of the Consumer Protection division of the Trade Ministry, said his office had confiscated the UD Benteng Baru sugar on the grounds the company had distributed super-white refined sugar in traditional markets and supermarkets in Makassar despite only being authorized to sell the sugar directly to the food and beverage industry.

"We found out that UD Benteng Baru has sold refined sugar to traditional markets and supermarkets in Makassar in sacks and 1-kilogram packages under brand name Gula Manis Jawa, claiming it was imported from India," said Didi.

However, the amount of sugar seized Saturday was far smaller than the 20,000 tons of refined sugar confiscated on Aug. 28 by the Trade Ministry's Directorate of Goods and Services Supervision and Consumer Protection division.

Director of the division Syahrul Raja Sampurna Jaya said police would investigate the whereabouts of 18,388 tons of sugar allocated for the industry.

"Police will ascertain where it has been distributed. But one thing's for sure. We found it being sold freely in traditional markets and supermarkets," Syahrul said in Makassar on Saturday.

Based on observations, UD Benteng Baru had been transporting and distributing refined sugar before the raids were conducted despite numerous warnings by authorities.

The South Sulawesi Industry and Trade Office recorded the food and beverage industry required 2,000 tons of refined sugar per year to meet demand.

Warehouse caretaker Reinald Sutanto refused to sign the police report on the pretext he was not the owner of the distributing company.

Syahrul said the company had breached Law. No. 8/1999 on consumer protection and had incurred loses upon the state.

However, the joint team has yet to name any suspects in the case. Police have questioned Reinald but have yet to summon UD Benteng Baru director Ridwan Tandiawan.

"Police are still building the case and have questioned witnesses. They will name suspects after they have enough evidence," Syahrul said.

The coalition will also conduct raids in markets in Makassar and other areas.

Syahrul said the amount of refined sugar being distributed in South Sulawesi per year was equal to 24 percent of the total amount of sugar distributed throughout the country per year. "We also found illegal trade in other provinces but their percentages are smaller," Syahrul said.

He said he expected a halt in the distribution of refined sugar could revive local sugar cane farmers and lower sugar prices.

Farmers in Takalar regency have struggled to sell their 2,000 tons of sugar reserves due to the plummeting price of locally-produced sugar and the illegal distribution of refined sugar.

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