Indonesia : Minister of Agriculture confirms sugar factories will keep operating
Jakarta’s Agriculture Minister Andi Amran Sulaiman clarified Friday that Indonesia’s sugar factories are operating normally, dismissing concerns of halted production. He said molasses oversupply stemmed from high sugar stocks, not factory shutdowns. Rp1.5 trillion from Danantara was allocated to buy farmers’ sugar, sustaining production. Molasses prices fell to Rp900/kg amid ethanol imports, prompting government monitoring.
Jakarta (ANTARA) – Minister of Agriculture Andi Amran Sulaiman emphasized that all sugar factories in Indonesia are still operating normally.
Sulaiman in Jakarta on Friday explained that molasses is a by-product of sugar production, and the actual problem is a build-up of sugar stocks, not a halt in domestic sugar factory operations.
“Molasses is a by-product of sugar factories. These sugar factories are still operating now; yesterday, what was piling up was sugar,” Sulaiman said in a press conference after a meeting with the Lampung Provincial Government and cassava and sugarcane farmer associations.
He explained that the government has addressed the sugar build-up through funds from Danantara amounting to Rp1.5 trillion to purchase farmers’ sugar, allowing factories to continue production.
“With the approval of the President (Prabowo Subianto), Rp1.5 trillion was provided by Danantara to purchase farmers’ sugar,” the Minister stated.
However, Sulaiman acknowledged that the price of molasses had dropped sharply due to the influx of imported ethanol, which had caused storage tanks to be full.
Furthermore, Sulaiman emphasized that every policy must balance the interests of all parties, from farmers, business players, to consumers, so that everyone benefits without anyone being disadvantaged.
According to him, the state’s goal is to ensure that farmers are happy, consumers are happy, and businesses continue to profit, so that the food ecosystem operates equitably and sustainably.
Sulaiman added that the ideal price for molasses should be around Rp2,000 per kilogram, but currently the price has dropped to Rp900 per kilogram.
He also emphasized that the government will continue to monitor price dynamics in the field and coordinate with relevant ministries to find strategic solutions to support sugarcane farmers and maintain the stability of the national sugar industry.
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Source : Antara News
