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View all search resultsLack of land casts doubt on govt’s sugarcane plantation mandate
The policy aims to close the widening gap between national sugar demand and local output while pushing the country closer to its sugar self-sufficiency target.
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A deforested area that will be converted into a sugar cane plantation by PT Murni Nusantara Abadi, directly threatening the adjacent customary forest protected by the Kwipalo Clan, is seen in this photo taken in Mandiri Jagebob, Merauke regency, South Papua, on March 17, 2025. (AFP/Handout/Mighty Earth/Yusuf Wahil)
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ugar processors have warned that the government’s plan to require refiners using imported raw materials to develop their own local sugarcane plantations could temporarily push up retail prices. They also flagged major hurdles in land acquisition and raised concerns over potential environmental risks.
The idea was revealed by Agriculture Minister Andi Amran Sulaiman, who stated that the policy aims to close the widening gap between national demand and local output while pushing the country closer to its sugar self-sufficiency target.
“What’s happening in the field? The domestic market is flooded with imported refined sugar,” Minister Amran told House of Representatives Commission VI, which oversees state-owned enterprises, on April 8, citing reports from farmers in Central Java, East Kalimantan and South Sulawesi.
According to ministry data, total national sugar demand stands at 6.7 million tonnes, broken down into 3.9 million tonnes for industrial use and 2.8 million tonnes for household consumption.
Domestic production of white crystal sugar (GKP), however, reached only 2.67 million tonnes, leaving a shortfall of 4.03 million tonnes that must be covered by imports.
The minister expressed concern that refined sugar from import-dependent factories has been flooding directly into farming areas and local markets, undercutting local growers and discouraging on-farm planting.
No timeline has been set for a final decision, but the minister confirmed that his office was continuing to evaluate input from farmers and industry stakeholders before moving forward.
