Refined Sugar Supply Secure Through Year-End, 2027 Imports to Be Fast-Tracked

JAKARTA, JakartaWeekly.com—Refined sugar supplies for industrial use are expected to remain sufficient through December 2026, including during the Christmas and New Year (Nataru) holiday period. However, availability is expected to be limited in January 2027, prompting the government to seek faster completion of industrial demand plans and import approvals.

The Minister of Industry Muhammad Samurji said the government had coordinated with the Indonesian Refined Sugar Association (AGRI) to anticipate industrial raw material needs ahead of the Christmas and New Year holidays, followed by the fasting month of Ramadan and Eid al-Fitr.

“Those who raised concerns earlier now have 90% of their needs available. The supply is already there, and God willing, no factories will have to halt production due to a shortage of refined sugar. God willing, supplies will remain secure through December,” the minister said after meeting with AGRI on Tuesday (Oct. 27, 2026).

He said demand for industrial raw materials typically rises during these holiday periods. The government is therefore taking steps to ensure refined sugar supplies are sufficient to keep industrial production running.

He added that the government was also working to ensure refined sugar for industrial use could arrive earlier next year. The industrial demand plan needs to be finalized promptly so that refined sugar orders can be fulfilled.

“The question is whether supplies can arrive earlier at the beginning of the year. That is what we are working on, so the industrial demand plan can be finalized promptly and orders for refined sugar as an industrial raw material can be secured at the beginning of next year, with deliveries expected to arrive earlier,” he said.

AGRI Chairman Supriadi said refined sugar imports this year were estimated at around 3 million tonnes. The volume was sufficient to meet demand through the end of December, but supplies would be limited in January.

“This year, the volume is around 3 million tonnes. However, it is sufficient to meet demand through the end of December. Only a small amount will be available in January,” Supriadi said.

He said AGRI had sought the industry minister’s support to accelerate the issuance of the industrial demand plan and import approvals for 2027. The process needs to be expedited to ensure refined sugar supplies are available again in January.

Asked whether import requirements could increase by 5% next year, Supriadi said AGRI was still awaiting input from GAPNI on the needs of the food and beverage and pharmaceutical industries. The required import volume for refined sugar in 2027 has therefore yet to be determined.

Supriadi said AGRI had submitted its proposal to the Ministry of Industry, which would then coordinate with the Ministry of Trade.

Preventing Diversion Into the Consumer Market

In addition to discussing supply availability, the industry minister urged AGRI to ensure that refined sugar intended for industrial use did not leak into the consumer market as sugar for direct consumption. He said domestic production of consumer sugar was considered sufficient to meet demand.

“We will guarantee adequate supplies of refined sugar as an industrial raw material. In return, we strongly urge the association to ensure that refined sugar does not leak into the consumer market as sugar for direct consumption, and we will strictly monitor distribution,” he said.

The minister said coordination between the government and AGRI was crucial to monitoring refined sugar distribution. The government would also identify potential loopholes that could allow diversion and conduct oversight in coordination with the Ministry of Trade.

He said the risk of leakage at large factories was considered lower because they needed refined sugar as an industrial raw material. Nevertheless, monitoring would continue.

During the interview, the minister did not provide figures on the volume of refined sugar that had entered the consumer market through diversion this year. He said the government would monitor the issue together with the Ministry of Trade.

The minister also said capacity utilization in the agro-industrial sector, particularly in food and beverage manufacturing, remained at around 60%. The government was committed to ensuring adequate raw material supplies, including refined sugar, to increase capacity utilization in the sector.

He said higher capacity utilization was expected to increase the contribution of the food and beverage subsector, which already accounted for a substantial share of industrial and agro-industrial activity.