Jakarta, Indonesia: Agriculture Minister Andi Amran Sulaiman on Friday stressed that all sugar factories in Indonesia are still running normally, dismissing concerns of a production halt, reports Antara News.
Speaking in Jakarta after a meeting with the Lampung Provincial Government and farmer associations, Sulaiman clarified that molasses — a by-product of sugar production — is not the issue. “The factories are operating as usual. What piled up recently was sugar, not molasses,” he said.
To address the sugar stock build-up, the government has allocated Rp1.5 trillion through Danantara to purchase sugar from farmers, allowing factories to continue production. “With the President’s approval, Rp1.5 trillion was provided to buy farmers’ sugar,” Sulaiman explained.
However, he acknowledged that molasses prices have fallen sharply because of an influx of imported ethanol, leaving storage tanks full. The price, which ideally should be around Rp2,000 per kilogram, has dropped to Rp900.
Sulaiman underlined that government policies must strike a balance between farmers, businesses, and consumers. “The aim is for farmers to be happy, consumers to be happy, and businesses to keep running profitably, so that the food ecosystem remains fair and sustainable,” he said.
He added that the government will continue monitoring price movements and work with relevant ministries to find long-term solutions to support sugarcane farmers and stabilize the national sugar industry.
