Indonesia's Sugar Import Quota for 2026: A Delicate Balance

Introduction

The Indonesian government's decision to set a 3.12 million ton sugar import quota for 2026 has sparked debate among industry stakeholders. On one hand, the move aims to ensure a stable supply of sugar for the industrial sector, which is crucial for the production of various goods. On the other hand, the decision has been criticized by the Indonesian Sugarcane Farmers Association (APTRI), which believes that the quota is excessive and could harm the domestic sugar industry ¹

.

The Rationale Behind the Quota

According to the government, the sugar import quota is necessary to meet the demands of the industrial sector, which requires a significant amount of sugar for production ²

. The quota is also seen as a way to stabilize the price of sugar in the domestic market, which has been volatile in recent years ³

Source 3

https://nasional.kontan.co.id/news/kuota-impor-gula-ditetapkan-sebesar-312-juta-ton-pada-2026-ini-respons-agi

. However, APTRI argues that the quota is too high and could lead to an oversupply of sugar in the market, ultimately harming the domestic sugar industry ¹

Source 1

https://nasional.kontan.co.id/news/pemerintah-mau-impor-gula-industri-312-juta-ton-di-2026-aptri-itu-berlebihan

.

Industry Reactions

The sugar import quota has received mixed reactions from industry stakeholders. While some have welcomed the move as a necessary step to ensure a stable supply of sugar, others have expressed concerns about the potential impact on the domestic sugar industry ⁴

. The Indonesian Food and Beverage Association (GAPMMI) has stated that the quota is necessary to support the growth of the food and beverage industry, which is a significant contributor to the country's economy ⁵

Source 5

https://finance.detik.com/berita-ekonomi-bisnis/d-8284849/ri-setop-impor-beras-buat-industri

.

Conclusion

In conclusion, the Indonesian government's decision to set a 3.12 million ton sugar import quota for 2026 is a complex issue that requires careful consideration of the potential impacts on the domestic sugar industry and the industrial sector. While the move aims to ensure a stable supply of sugar, it is crucial to monitor the effects of the quota and make adjustments as necessary to support the growth of the domestic sugar industry.