Jakarta (ANTARA) - Agriculture Minister Amran Sulaiman announced that the government has allocated approximately 1.5 trillion rupiahs to purchase sugar from local sugarcane farmers.
“We’re initially setting aside Rp1.5 trillion. I believe that’s sufficient,” Sulaiman said after a working meeting with Commission IV of the House of Representatives in Senayan on Thursday.
The allocation of approximately 91.7 million US dollars followed discussions with Danantara Indonesia CEO Rosan Roeslani, prompted by reports of oversupply from domestic sugarcane farmers. The purchase will be handled by state-owned food company ID Food.
Sulaiman expressed gratitude for Indonesia’s ample sugar stock and emphasized the government’s role as an off-taker to support farmers.
Sugarcane farmers in East Java have urged the government to overhaul the sugar trade system, citing poor market absorption since the 2025 milling season began.
They blame the influx of refined sugar—intended for industrial use—for disrupting the consumer market.
Tasirin, coordinator of the Sugarcane Farmers Forum, said farmers were initially enthusiastic about the government’s sugar self-sufficiency program but lost momentum due to market rejection of locally produced sugar.
Refined sugar, made from raw sugar, and fortified sugar, enriched with micronutrients, are both imported and cheaper than locally produced white crystal sugar.
Sulaiman firmly stated that refined sugar must not enter the consumer market.
“We’ve coordinated with law enforcement. This is unacceptable and harmful to our farmers,” he said.
