Indonesia : Eased ethanol imports in Indonesia stir discontent among sugarcane farmers
Indonesia’s sugarcane farmers warn that relaxed ethanol import rules under Trade Ministry Regulation No.16/2025 could depress molasses demand, threatening incomes and sugar mill operations. APTRI chairman Soemitro Samadikun noted stalled advance purchases, rising unsold molasses, and environmental risks. Farmers fear price drops and reduced support for domestic ethanol production.
ANN/THE JAKARTA POST – Sugarcane farmers in Indonesia are raising concerns over the government’s decision to ease ethanol import regulations, warning that the move could marginalise them as unsold molasses – a key raw material for domestic ethanol production – continues to accumulate.
Under Trade Ministry Regulation No 16/2025, issued on June 30 and effective from August 29, the government relaxed import restrictions on various goods, including ethanol, as part of broader deregulation efforts.
The regulation permits ethanol imports without requiring technical approval from other relevant agencies.
Indonesian Sugarcane Farmers Association (APTRI) chairman Soemitro Samadikun said that sugarcane farmers and sugar mills have been severely affected by the regulation, with growing concerns that ethanol imports may depress prices and reduce demand for locally produced molasses.
“Even before the regulation took effect, (farmers) already felt the impact. In previous years, buyers were typically active in making down payments to secure molasses in advance. This year, however, that activity has stalled,” he told The Jakarta Post.
Soemitro added that unabsorbed molasses posed significant risks, harming both the environment and sugar factories. Unlike sugar, which can be stored and preserved for years, molasses requires special storage tanks, strict safety measures and cannot be kept for too long.
“Once (molasses) passes a certain storage limit, its physical form, properties and chemical composition change. We cannot take it lightly when molasses sales stall,” he said.
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Source : Borneo Bulletin
