JAKARTA - The government has ensured that the absorption of sugar from domestic farmers is proceeding according to plan to maintain the stability of the national sugar ecosystem. The Head of the National Food Agency (Bapanas), Arief Prasetyo Adi, stated that the government's intervention through ID Food and funding support from Danantara are concrete manifestations of its commitment to farmers.
"The production spirit of fellow sugar farmers must be maintained. Hopefully, the steps taken to fulfill the government's sugar reserve stock (CGP) through the absorption of ID Food and Danantara will stabilize the current national sugar situation," Arief said in a written statement on Thursday, August 28.
Arief also emphasized that raw sugar imports in March-April 2025 are solely to strengthen CGP stocks and will not impact farmers as the peak harvest season has not yet begun. "Previous raw sugar procurement is guaranteed to have no significant fluctuations, as it was completed last April," he said.
According to the Food Outlook Biannual Report on Global Food Markets released by the FAO in June 2025, Indonesia's sugar production for the 2024/2025 period is projected to reach 2.6 million tons. This figure places Indonesia as the second-largest sugar producer in the ASEAN region, after Thailand (10 million tons), and surpassing the Philippines (1.8 million tons) and Vietnam (1.1 million tons).
Meanwhile, I Gusti Ketut Astawa, Deputy for Food Availability and Stabilization at the National Food Security Agency (Bapanas), explained that sugar absorption will proceed in stages and be done cautiously.
"Indeed, the short-term solution for farmers' sugar is for traders and the government to absorb it. Currently, there is certainty that Danantara will provide subsidies. Traders have been triggered by Danantara. They will be willing to buy, and Danantara will buy them. That's the agreement," Ketut explained.
However, he cautioned that this process cannot be carried out carelessly. "However, this does require a little more patience, because Danantara and ID Food cannot act carelessly. There must be a principle of prudence. The governance must be sound. Hopefully, it will be finalized soon; we are pushing for that. Once it's released, absorption can be accelerated," added Ketut.
Strengthening CGP and Market Supervision
The National Food and Agriculture Agency (Bapanas) fully supports strengthening the government's sugar reserves through ID Food, sourcing it from domestic production. In accordance with the Head of Bapanas Decree No. 40 of 2025, the minimum CGP stock is set at 260,000 tons, with a target stock of 26,000 tons by the end of 2025.
Distribution to the public will be carried out through public markets at prices based on the Sales Reference Price (HAP), or below the average market price. Ketut also emphasized that this year's imported raw sugar stock is still stored as CGP and has not yet been distributed. Meanwhile, supervision of refined sugar leaks will continue to be tightened in collaboration with the National Police Food Task Force.
"Another solution to support sugar absorption today is law enforcement against refined sugar leakage. This is being carried out in collaboration with the National Police Food Task Force, because it has become our target and our concern, so we must also eliminate refined sugar leakage," he said.
Furthermore, Ketut reminded sugar farmers to work together to maintain the selling price at Rp 14,500 per kilogram. "Sugar farmers must also work together. No one should sell below Rp 14,500. The government has provided space with a certain HAP (Restricted Price Increase) so that we can work together to build farmer strength. If Danantara has been reduced but there are still cases, report them to us. Who is buying and who is selling?" he requested.
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