Commenting on the Sugar Import Issue, IPB University Agricultural Policy Expert: The Government is Inconsistent
The government has decided to import 200,000 tons of sugar. The imported sugar is raw crystal sugar intended as part of the government’s sugar reserves. This decision was announced on February 12 during a coordination meeting at the Coordinating Ministry for Food Affairs.
This move is inconsistent with the government’s previous ambition to avoid food imports, including sugar, as stated by the Coordinating Minister for Food Affairs on December 9, 2024.
Dr Feryanto, an Agricultural and Agribusiness Policy Expert at IPB University, stated that this policy reflects the government’s inconsistency. He conveyed this when contacted by IPB University’s Public Relations team (18/2).
“In my view, the government’s plan to import sugar is an example of inconsistent policymaking, especially considering the previous statement that no food imports, including sugar, would be necessary,” he explained.
He further elaborated, “However, the government has now revised and altered this policy to allow the import of 200.000 tons of raw sugar in 2025.”
Dr Feryanto believes that the government lacks proper forecasting regarding production, consumption, and food reserves, particularly for sugar. “If the government had accurate data and projections, this inconsistency would not have occurred,” he stated.
He added that academics had previously warned the government about potential food price volatility if import restrictions were not accompanied by effective stock management. Ideally, the decision to halt imports should have accounted for these factors from the beginning.
However, sugar prices have been rising since late 2024. From September 2024 to mid-February 2025, the average price of sugar in traditional markets increased by 3 percent. This upward trend is expected to continue with Ramadan and Eid approaching, as sugar prices typically rise during these periods.
This price trend became the basis for the government’s decision to import 200.000 tons of raw sugar for reserves, which will later be processed into consumer sugar.
Dr Feryanto pointed out that this policy aims to stabilize and curb sugar price increases that could drive inflation ahead of Eid and throughout 2025. “Thus, this import decision is a short-term solution,” he noted.
Indonesia remains one of the world’s largest sugar importers, bringing in approximately 5,6 million tons during the 2023-2024 period. This dependency highlights the insufficiency of domestic production to meet industrial and consumer demand.
Dr Feryanto acknowledged that government data shows Indonesia’s sugar production capacity is still inadequate to fulfill national needs. According to the Ministry of Agriculture, in 2023, the total sugarcane plantation area covered 504.776 hectares, producing 2.271.009 tons of sugar.
Meanwhile, national sugar consumption continues to rise alongside population growth and the expansion of the food and beverage industry. According to GoodStats.id, in 2023, sugar consumption was estimated at 3,402 million tons, resulting in a deficit of approximately 1,131 million tons, which had to be covered through imports.
The target for national consumer sugar production in 2025 is 2,6 million tons, with no expected disruptions. In fact, 2024’s sugar production reached 2,46 million tons, surpassing 2023’s total of 2,2 million tons.
Despite this increase, Dr Feryanto highlighted that the domestic sugar industry still faces several challenges, including limited land availability, suboptimal processing technology, and low sugarcane yield efficiency. These factors contribute to restricted local sugar production, which remains insufficient to meet national demand.
“Although efforts have been made to revitalize sugar factories and increase productivity, the results have not been significant in reducing dependence on imports. Additionally, domestic sugar prices are often higher than international prices, affecting the competitiveness of local sugar in the market,” he stated. (dh) (IAAS/RUM)
