Indonesia’s National Food Agency announced on Thursday plans to import approximately 200,000 metric tons of raw sugar, aiming to bolster the government’s food reserve as domestic white sugar prices rise ahead of Ramadan.
The country’s anticipated white sugar production for 2025 stands at 2.6 million tons, while domestic demand is projected to reach 2.84 million tons. As of early February, Indonesia’s white sugar stocks totaled 842,000 tons. However, National Food Agency Chief Arief Prasetyo Adi clarified that the decision to import more sugar is not due to a production shortage but rather to ensure adequate stock levels.
The Statistics Bureau reported that the average price of white sugar in the first week of February was 18,365 rupiah ($1.12) per kilogram, which is about 5% higher than the government’s established ceiling price. To mitigate the price increase, the government intends to use its food reserves to supplement market supply.
Arief emphasized that the sugar reserves could satisfy domestic demand for up to five months. The additional imports are expected to arrive gradually throughout the year and will be distributed to state-owned food companies.
In 2025, Indonesia has set an import quota of 3.4 million tons of raw sugar, primarily for industrial use. The government remains focused on its long-term goal of achieving food self-reliance within the next four years.
Related topic:
Is There A Limit On The Number Of Sugar Futures Transactions?