Indonesia cassava import ban boosts farmer prices and bioethanol prospects

The Indonesian government's decision to halt cassava imports has led to increased prices for domestic farmers. In production centers such as Lampung, prices have risen to approximately Rp2,400 per kilogram.

Arifin Lambaga, Chairman of the Indonesian Cassava Society (MSI), expressed appreciation for the policy implemented by Minister of Agriculture Andi Amran Sulaiman and the President. He noted that reducing import supplies has opened significant domestic market opportunities, particularly for the national bioethanol industry.

To support the government's E20 fuel blending program (20 percent bioethanol), the industry will require approximately 2.2 million kiloliters of bioethanol. The MSI has expressed readiness to support the transition toward E20 and even E50 fuel programs, provided that raw material supplies are guaranteed. To meet this demand, the MSI is prepared to participate in developing around 500,000 hectares of cassava land, though they emphasized the need for improved access to high-quality seeds, fertilizer, agricultural machinery, and financing.