Indonesia targets sugar self-sufficiency as government pushes production reforms

Indonesia targets sugar self-sufficiency as government pushes production reforms

Agriculture Minister Andi Amran Sulaiman expressed confidence that Indonesia can eliminate its dependence on white sugar imports as the government intensifies efforts to boost domestic sugarcane production and modernize the sector.

Speaking during a working visit to Sugar Group Companies (SGC) in Tulang Bawang District, Lampung, Amran said the nation would not need to import white sugar if strategic government support successfully raises domestic yields. The visit took place at Indonesia's largest sugarcane plantation and sugar factory, which operates over 62,000 hectares in Lampung Province and produces the Gulaku brand.

Current production and import dependency

Indonesia currently imports approximately 3.93 million tons of sugar annually, primarily from Brazil, Thailand, and Australia, to bridge the gap between domestic production and consumption. National sugar production reached 2.67 million tons in 2025, up from 2.47 million tons in 2024 and 2.23 million tons in 2023, showing steady growth but still falling short of the projected annual demand of 7.7 million tons.

Challenges facing the industry

The minister identified a critical challenge facing the industry: approximately 86 percent of smallholder sugarcane plasma plantations require crop replacement to restore optimal yields. President Prabowo Subianto, who has made food self-sufficiency a cornerstone of his administration since taking office in October 2024, has directed the allocation of government funds to support farmers with land clearing and replanting programs.

"The President ordered us to be given a budget to dismantle and replant these smallholder plasma plantations," Amran stated during the visit.

Production targets and expansion plans

To reach the national target of 3 million metric tons of sugar production, the Agriculture Ministry is pushing for significant land optimization and technical improvements. The government has set an ambitious productivity goal of 100 tons of sugarcane per hectare, a substantial increase from current yields that average between 60 and 66 tons per hectare.

The administration has outlined a broader roadmap for sugar self-sufficiency, targeting household consumption sugar by 2028 and industrial sugar by 2030. This timeline represents the latest iteration of a goal that successive governments have pursued since 2001, with previous targets repeatedly postponed from 2020 to 2024.

The government plans to expand sugarcane plantation areas by 700,000 hectares as part of this strategy. Currently, Indonesia has approximately 563,000 hectares of harvested sugarcane area across major producing provinces including East Java, Lampung, Central Java, South Sumatra, and West Java.

Infrastructure modernization needs

Infrastructure modernization presents another significant challenge. Approximately 37 out of 43 state-owned sugar mills are over 100 years old, highlighting the need for investment in processing facilities alongside plantation expansion.

Private sector role

During his Lampung visit, Minister Amran commended the private sector's contribution to rural development and economic stability through large-scale agricultural operations.

"Companies like SGC play a vital role, employing roughly 40,000 workers and contributing directly to the country's agricultural development," he said.

The minister emphasized that achieving national sugar self-sufficiency requires sustained collaboration among the central government, private sugar companies, and smallholder farmers to strengthen domestic supply chains and reduce import dependency.