Indonesia, the world's second-largest sugar importer, is expected to keep imports at a seven-year low by 2026, as the government pushes to prioritize domestic supply.
Vice President of the Indonesian Sugar Refiners Association, Januardi Suryo Haribowo, said processors would buy 3 to 3.1 million tonnes of imported raw sugar starting next year due to weak demand.
He said raw sugar imports next year were expected to meet the government's quota of 3.4 million tonnes, almost the same as last year, after all 11 members of the refining association met import permit requirements.
The Agriculture Ministry said the country would temporarily halt imports after farmers complained that their agricultural produce was not selling.
The ministry also expressed concern that some sugar that was supposed to be for the food and beverage industry was being sold to household consumers at lower prices than domestic supplies.
Indonesian Trade Minister Budi Susanto said the government would not stop imports for companies that already have permits and urged the industry to use local production.
In Indonesia, imported raw sugar is processed by refiners for use in the food and beverage industry, while sugar for household use is obtained from factories that process local sugarcane and imports operated by the government.
The Parliamentary Commission also urged the Ministry of Trade to re-evaluate the import licenses issued and impose penalties or revoke licenses for companies that violate the policy.
