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View all search resultsU-turn on ethanol imports to protect farmers, secure supplies
The Trade Ministry has reinstated controls on ethanol imports to stabilize molasses prices and protect sugarcane farmers, while also issuing new rules on cassava to support domestic producers.
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Workers plant sugarcane seedlings in Hamparan Perak, Deli Serdang regency, North Sumatra, on Aug. 28, 2025. (Antara/Yudi Manar)
Trade Minister Budi Santoso issued a new regulation reinstating controls on ethanol imports, reversing a previous free-entry policy.
The move, announced Friday, is aimed at protecting sugarcane farmers and stabilizing molasses prices, while ensuring steady supplies for industries that rely on ethanol.
A parallel regulation was also issued to govern cassava imports. The rules, set out in Trade Ministry regulation No. 32/2025 on ethanol and No. 31/2025 on cassava, will take effect within 14 days of enactment.
“The issuance of these two Trade Ministry regulations follows the President’s directive. The goal is to meet industrial needs, protect local farmers and ensure the security of national strategic raw material supplies,” Budi said in a statement.
Regulation 32/2025 reintroduces import approval requirements for ethanol, after an earlier policy allowed unrestricted entry.
The reversal follows calls from ministries and industry groups to safeguard the price of molasses as a key raw material for ethanol.
“The aim is to avoid disrupting the absorption of local molasses. Ethanol is very important for industry, but it must also be ensured that sugarcane farmers, who have long supplied the raw materials, are not harmed,” Budi said.
