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🇮🇩 Indonesia /Economy & Trade

Indonesia tightens refined sugar import controls to protect local sugarcane farmers

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

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  • The Indonesian government will tighten control over refined sugar imports and require importers to develop domestic plantations to protect local sugarcane farmers and achieve self-sufficiency.
  • Refined sugar imports have flooded the domestic market, depressing prices and causing significant financial losses for state-owned enterprises and farmers, with one state firm reporting losses of $33.2 million.
  • The new policy mandates that sugar processors and importers must own plantations supplying at least 20% of their raw material needs, with non-compliance facing zero tolerance.

Indonesia is implementing stringent measures to control refined sugar imports and bolster its domestic sugarcane industry, aiming for self-sufficiency within two years. Minister of Agriculture Andi Amran Sulaiman announced that the government will enforce regulations requiring sugar importers to develop their own plantations, supplying at least 20% of their raw material needs.

What is happening on the ground, the refined sugar market is truly flooded. If there is even a small leak, it immediately floods, and the sugarcane farmers suffer tremendous losses.

— Andi Amran SulaimanMinister of Agriculture Andi Amran Sulaiman explaining the impact of imported sugar on local farmers.

This move comes as a response to the severe impact of excessive refined sugar imports on local farmers and state-owned enterprises. Sulaiman stated that the domestic market has been flooded, leading to a drastic drop in sugarcane prices and substantial financial losses. State-owned plantation company PT Perkebunan Nusantara reported losses of approximately $33.2 million, while PT Sinergi Gula Nusantara incurred losses of $37.6 million in 2025 due to market pressure from imported sugar.

The crisis has hit farmers hard, with the price of molasses dropping by nearly half to around $0.05 per liter. In East Java, tens of thousands of tons of harvested sugar remain in warehouses, and farmers are threatening a national strike. This situation stems from a delay in the disbursement of $82.9 million in funds, impacting eight harvest cycles. The volume of unsold farmer sugar is estimated at 1.6 million tons, potentially causing losses between $221.2 million and $387.1 million.

All private companies operating in the sugar industry must develop their own plantations. The same applies to importers.

— Andi Amran SulaimanMinister of Agriculture Andi Amran Sulaiman stating the new requirement for sugar producers and importers.

Previously, only one of the 11 active refined sugar producers in Indonesia had complied with the 20% domestic plantation requirement since 2014. The government is now enforcing Ministry of Agriculture Regulation No. 98/2013, with Minister Amran emphasizing "no more tolerance" for companies relying solely on imports without contributing to domestic cultivation. The policy has garnered support from the parliamentary commission overseeing trade and state-owned enterprises.

There is no more tolerance for those who only rely on imports without contributing to the development of domestic plantations.

— Andi Amran SulaimanMinister of Agriculture Andi Amran Sulaiman emphasizing the strict enforcement of the new policy.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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