February 7, 20260 views0 shares
Indonesia's Sugar Self-Sufficiency Goal Faces Delays Amid Investment Hurdles
Indonesia's ambitious 2028 sugar self-sufficiency target is facing significant delays, according to the Ministry of Agriculture. Challenges in land acquisition and slower private investment are hindering sugarcane expansion and mill modernization, suggesting Indonesia will remain a net importer for the foreseeable future.
Jakarta, Indonesia – Indonesia's ambitious goal of achieving sugar self-sufficiency by 2028 appears to be facing significant delays, according to recent reports from the Ministry of Agriculture. Despite substantial government initiatives and investment pledges, the expansion of sugarcane plantations and modernization of milling facilities have not progressed at the anticipated pace. Key challenges include difficulties in land acquisition, particularly for large-scale plantations, and a slower-than-expected inflow of private sector investment into new refinery projects. The country currently imports a considerable portion of its raw and refined sugar to meet its growing domestic demand, estimated at over 7 million metric tons annually. While efforts to boost local production continue, including providing incentives for farmers and improving irrigation infrastructure, the timeline for complete self-sufficiency is now being re-evaluated. Analysts suggest that Indonesia will likely remain a net importer for the foreseeable future, continuing to exert upward pressure on global sugar prices, especially for raw sugar. The government is reportedly exploring new partnerships and streamlining regulatory processes to accelerate progress, but significant hurdles remain.