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The State Logistics Agency asked the Trade Ministry on Friday to give it the permanent right to import sugar, saying this would allow it to better maintain adequate supply and ensure stable prices.

Under current Trade Ministry regulations, only companies that also produce sugar are allowed to import it.

The agency, also known as Bulog, was allowed to import 50,000 tons of sugar in a one-off deal earlier this year to alleviate shortages.

It is now asking for “licensed importer” status which would allow it to import sugar whenever it sees fit.

Bulog officials asked to be granted the status at a meeting with the House of Representatives’ Commission VI, which oversees trade and industry.

“If we want to achieve fulfillment of national sugar stocks in the next five years, then we need to achieve a more stable sugar price,” Bulog chairman Sutarto Alimoeso said. “This will be more likely to be achieved if Bulog attains the licensed importer of sugar status.”

Indonesian Democratic Party of Struggle (PDI-P) lawmaker Aria Bima, vice chairman of Commission VI, expressed reservations about permanently allowing Bulog to import sugar.

“When Bulog was given a license to import sugar in early January, it also had to distribute the 50,000 tons of sugar in January and February,” he said. “But until now, it has only been able to distribute less than 8,000 tons of it, and we’re almost midway through February. How can Bulog focus if it also has to import sugar?”

Fadil Hasan, an economist at the Institute for the Development of Economics and Finance, said he didn’t think granting Bulog importer status would contribute to more stable sugar prices in the long term.

Yanuar Rizky, an independent financial analyst, said that if Bulog were allowed to import sugar it would affect the basic functioning of the agency.

“I think the scheme has a strong Bulog-wanting-to-be-more-profitable essence to it, because if Bulog is allowed to import, then we could face the risk of sugar oversupply, leading to price declines,” Yanuar said.

Prior to the 1997-98 Asian financial crisis, Bulog was allowed to import several key commodities. However, it lost the right to import food commodities, apart from rice, in the wake of the crisis because of conditions imposed by the International Monetary Fund.