In a notable policy change, the Indonesian government has decided to keep importing sugar in 2025, turning back its earlier plan to completely stop these imports. This decision was made because of worries about local sugar production and the need to keep market prices stable.
In December 2024, the Minister for Food Affairs, Zulkifli Hasan, announced that the government intended to end sugar imports, along with imports of rice, corn, and salt, claiming that the country had enough food supplies and wanted to achieve self-sufficiency. At that time, it was expected that domestic sugar production would reach 2.6 million tons in 2025, while the country would need around 2.84 million tons. The government hoped to close this gap by boosting production and improving farming practices.
However, recent evaluations suggested that local sugar production may not meet these expectations. Issues like bad weather and difficulties in expanding plantations have contributed to this shortfall. As a result, the government has changed its plan and will allow around 200,000 metric tons of raw sugar to be imported in 2025. This step aims to increase food reserves and tackle rising domestic white sugar prices, which have gone above the government’s set price by about 5% in early February 2025.
The National Food Agency has pointed out that these imports are meant to build up stock rather than fill a production gap. The sugar will be gradually imported throughout the year and will be managed by state-run food companies. This strategy aims to stabilize the market and ensure there is enough supply, especially before major consumption periods like Ramadan.
This policy change shows the government’s ability to respond to changing agricultural conditions and market needs. While the long-term goal is still to achieve food self-sufficiency, the immediate focus is on stabilizing prices and meeting the population’s consumption needs. The government continues to look for ways to improve local sugar production, including developing new seeds, better plantation management, and working with small and medium enterprises.
In summary, Indonesia’s choice to resume sugar imports in 2025 highlights the challenges of balancing self-sufficiency goals with the realities of current production abilities and market conditions.
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