Indonesia, the world’s second-largest importer of sugar, is expected to scale back purchases from overseas in 2026 to the lowest level since 2019, as the government pushes refiners to rely more on domestic supply, reports Bloomberg.
Refineries are likely to import between 3 million and 3.1 million tons of raw sugar next year, said Januardi Suryo Haribowo, vice chairman of the Indonesia Sugar Refiners Association. That would mark a decline from this year’s quota of 3.4 million tons and reflect weaker demand. The group’s records show the planned imports would be the smallest in seven years.
The outlook adds to downward pressure on global sugar markets, where New York futures have recently fallen to a four-year low.
The agriculture ministry had earlier said imports would be temporarily halted after local farmers complained their harvests were not being sold. Officials also voiced concern that sugar meant for the food and beverage industry was being diverted to household consumers at lower prices than domestic supplies.
Trade Minister Budi Susanto clarified this week that imports will continue for companies that already hold permits, but urged refiners to prioritize locally produced sugar. The agriculture ministry did not respond to a request for further details on the proposed suspension.
For 2025, raw sugar imports are expected to meet the government’s quota of 3.4 million tons, according to Haribowo. Data from the ministry show that as of September, refineries had purchased 2.82 million tons — more than 80 percent of the allocated volume.
In Indonesia, refineries use imported raw sugar mainly for the food and beverage industry, while household sugar supplies come from domestic cane mills and government imports.
On Wednesday, a parliament commission called on the trade ministry to review import licenses and penalize violators, including revoking permits if companies are found to be breaking policy.
