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Indonesia's Agriculture Push: Sugar Farm Rule, Refined‑Sugar Import Clamp, Rice Stock and Fortification Prices
Minister of Agriculture Andi Amran Sulaiman reaffirmed that every sugar‑processing factory must own sugarcane plantations capable of supplying at least 20 % of raw‑material needs, as mandated by the 2013 Ministerial Regulation and the 2014 Plantation Law. The government is tightening enforcement after finding only one of eleven refineries complies.
Indonesia will also tighten controls on refined‑sugar imports, requiring importers to develop domestic plantations. State‑owned sugar producers PT Perkebunan Nusantara and PT Sinergi Gula Nusantara reported losses of roughly Rp600‑680 billion due to the import surge.
The ministry announced a free‑seed programme covering 870,000 ha of coconut, sugarcane, cocoa, coffee, cashew, nutmeg and pepper.
National rice reserves were disclosed at 26 million tonnes, enough for ten months, with the minister saying the looming El Niño “Godzilla” will not jeopardise food security.
Investigations into fortified rice found 13 of 15 sampled brands failed to meet SNI standards, and some were sold for up to Rp42,000 per kilogram despite a production cost of only Rp700‑1,000 per kilogram. Similar irregularities were reported for premium rice, where mislabelled products allegedly generated profits of up to Rp2 trillion per month. The ministry estimated consumer losses from rice‑quality fraud at around Rp100 trillion.
Entities
Andi Amran Sulaiman · Indonesia · Indonesian Ministry of Agriculture · Java · Johannes van den Bosch · Ministerial Regulation No 98 (2013) · Ministry of Agriculture (Indonesia) · National rice reserves (Indonesia) · PT Perkebunan Nusantara · PT Sinergi Gula Nusantara · Prabowo Subianto · President Prabowo Subianto
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] Each processing unit must establish its farm within three years and supply at least 20 % of its raw sugarcane needs. economy.okezone.com · www.jpnn.com
- [● 2 SOURCES] The policy aims to accelerate national sugar self‑sufficiency and protect sugarcane farmers. economy.okezone.com · www.jpnn.com
- [● 2 SOURCES] A 2013 Ministry of Agriculture regulation also mandates farm ownership for sugar factories. economy.okezone.com · www.jpnn.com
- [○ 1 SOURCE] The modern layout of Java’s sugarcane fields originates from the Dutch colonial Cultuurstelsel forced‑cultivation system introduced in 1830 by Governor‑General Johannes van den Bosch.
- [● 2 SOURCES] The requirement is based on the 2014 Indonesian Plantation Law (UU Perkebunan). economy.okezone.com · www.jpnn.com
- [○ 1 SOURCE] Indonesia produced 2.46 million tonnes of sugar in 2024 from 520,822 hectares of farmland.
- [● 2 SOURCES] All Indonesian sugar processing factories must own their own sugarcane farms. economy.okezone.com · www.jpnn.com
- [○ 1 SOURCE] East Java accounted for 45.99 % of Java’s sugarcane farmland, while Central Java contributed 10.74 %.
- [● 5 SOURCES] All sugar processing units in Indonesia must own sugarcane farms and supply at least 20 % of their raw material needs. www.viva.co.id · economy.okezone.com · www.jpnn.com · news.republika.co.id
- [● 2 SOURCES] Imported refined sugar has flooded the Indonesian market, depressing domestic prices and causing losses for state‑owned sugar producers. news.republika.co.id
- [● 4 SOURCES] The requirement is based on the 2013 Ministerial Regulation No 98 and the 2014 Plantation Law (UU Perkebunan). www.viva.co.id · economy.okezone.com · www.jpnn.com · news.republika.co.id
- [● 2 SOURCES] Molasses price fell from around Rp1,900 per litre to about Rp1,000 per litre in March 2026. news.republika.co.id