“Indonesia, known as the world’s largest sugar importer, reveals ambitious plans to ramp up sugarcane cultivation in Papua’s eastern region. The initiative aims to reduce reliance on imports and foster a homegrown sugar industry, with a focus on bioethanol production, as announced by a cabinet minister on Monday.”
Against the backdrop of soaring domestic sugar prices fueled by tight supply, Indonesia’s announcement of plans to expand sugarcane cultivation in Papua’s eastern region comes as a strategic move. The decision follows last year’s drought, triggered by the El Niño weather phenomenon, which severely impacted crop yields.
In 2022, Indonesia’s government established an ambitious goal of achieving self-sufficiency in sugar production by 2027. To realize this objective, substantial expansion of sugarcane plantations is imperative.
The government has identified 2 million hectares (4.9 million acres) of land in Merauke, South Papua province, for an industrial estate for sugarcane plantations, mills, a bioethanol plant and a biomass power plant, Investment Minister Bahlil Lahadalia told reporters.”For the first phase, there will be two million seedlings coming from Australia,” Bahlil said, adding domestic companies, including state-owned firms, will lead the project.He did not provide details on the timeline for the industrial estate development. It was unclear whether the plans would include any forest clearance.
Currently, average domestic sugar price has risen 24 per cent from a year earlier to 18,344 rupiah ($1.13) per kilogram amid tight supply, government data showed on Monday, due to weak output.
The country’s sugar mills association expects the milling season to be delayed by a month to end of May this year.”El Nino driven drought damaged the (sugarcane) crops, some had to be replanted. … The sugarcane are not ripe yet, the beginning of milling season will be late,” said Dwi Purnomo Putranto, executive secretary of Indonesian sugar mills association.
