The Indonesian Sugarcane Farmers Association (APTRI) has urged the\ngovernment to revise the farmers\u2019 sugar cost price (HPP), which it says\nno longer reflects rising production costs. Farmers argue that higher\nfertiliser prices and the Middle East conflict have increased\ncultivation expenses, yet the HPP has remained unchanged for three\nconsecutive harvest seasons.<\/p>\n
APTRI Chairman Soemitro Samadikoen stated that global conflicts have\ndriven up prices for various agricultural inputs, particularly\nnon-subsidised fertilisers, which have become the primary burden for\nsugarcane farmers.<\/p>\n
\u201cThe impact of the Middle East conflict, unfortunately, has caused\nthe dollar to rise significantly, affecting us. The most evident effect\nis that non-subsidised fertiliser prices are now at Rp9,000 per kg or\nhigher,\u201d Soemitro said at an APTRI national meeting in Jakarta on\nMonday, 25 May 2026.<\/p>\n
\u201cAt the start of 2025, non-subsidised ZA Plus fertiliser was priced\naround Rp4,300 per kg, but it has now nearly doubled to approximately\nRp8,600.\u201d<\/p>\n
\u201cThe price of non-subsidised ZA Plus fertiliser at the beginning of\nthe 2025\/2026 season was only around Rp4,300 per kg,\u201d he added.<\/p>\n
\u201cSugarcane farmers receive only limited subsidised fertiliser\u2014enough\nfor a maximum of two hectares of land, or about 108 kg of subsidised\nZA\u2014which means the majority of their needs must be met with\nnon-subsidised fertiliser.\u201d<\/p>\n
\u201cWe only receive subsidised fertiliser for up to two hectares of\nland, with about 108 kg of subsidised ZA. Thus, we have to rely on\nnon-subsidised fertiliser,\u201d he said.<\/p>\n
\u201cIn addition to ZA Plus, farmers must purchase other fertilisers such\nas NPK, Ponska, and SP36 based on land requirements, causing production\ncosts to surge.\u201d<\/p>\n
\u201cTherefore, I must stress that this is not just irrational\u2014it\u2019s\noutright unjust,\u201d he said.<\/p>\n
\u201cAPTRI has called on the government to raise the farmers\u2019 sugar HPP\nto at least Rp15,000-15,500 per kg. They also demand the removal of the\nSelling Reference Price (HAP) at consumer level to allow more flexible\npricing for farmers.\u201d<\/p>\n
\u201cEven if the increase isn\u2019t substantial, raise the HPP to Rp15,000 or\n15,500 per kg, but the consumer-level HAP must be abolished entirely,\u201d\nSoemitro said.<\/p>\n
\u201cThe consumer-level HAP restricts auction prices for farmers, making\nthe market rigid and potentially disrupting sugar distribution,\u201d he\nexplained.<\/p>\n
\u201cIn practice, even a rise from Rp17,500 to Rp18,000 per kg is\nconsidered a sharp price jump. It\u2019s the chilli prices that are soaring,\u201d\nhe noted.<\/p>\n
\u201cAPTRI has calculated the ideal sugar price based on production costs\nand balance with other food commodities like rice.\u201d<\/p>\n
\u201cSugar has traditionally been 1.5 times the price of rice. There\u2019s a\nrational calculation behind this,\u201d he said.<\/p>\n
\u201cWith standard rice priced at Rp12,500 per kg, the ideal sugar price\nshould be at least Rp18,000 per kg.\u201d<\/p>\n
\u201cWe want sugar priced at Rp18,000 per kg, as 1.5 times the rice price\nat Rp12,500 is the minimum,\u201d Soemitro explained.<\/p>\n
\u201cMeanwhile, APTRI Secretary-General M. Nur Khabsyin said the Middle\nEast conflict has driven up fuel prices and other production costs, yet\nfarmers\u2019 sugar prices remain stagnant.\u201d<\/p>\n
\u201cAmid current global uncertainties, the Middle East conflict has\ndirectly impacted us with rising fuel prices and other costs, which are\nplacing immense strain on everyone,\u201d Nur stated.<\/p>\n
\u201cBut while fuel prices rise, sugar prices don\u2019t increase\u2014which we\nregret. We just received news that the HPP remains unchanged, which is a\nshock,\u201d he added.<\/p>\n
\u201cNur emphasised that the farmers\u2019 sugar HPP of Rp14,500 per kg has\nremained unchanged since the 2024 harvest season through 2026, despite\nnearly all production costs rising.\u201d<\/p>\n
\u201cWe\u2019ve had three harvest seasons without an HPP increase. The\nRp14,500 per kg rate has been in place since the 2024 harvest, and we\u2019re\nstill using it for the 2025 and 2026 seasons,\u201d he said.<\/p>\n
\u201cThis is highly irrational as production costs rise every year\u2014labour\nwages, transport, fuel, plastic prices due to the Middle East conflict,\nand land rents,\u201d Nur added.<\/p>\n
\u201cFertiliser now accounts for 15%-20% of total sugarcane production\ncosts. At Rp9,000 per kg for non-subsidised ZA, land cultivation costs\nfor one hectare can reach Rp50 million.\u201d<\/p>\n
\u201cNon-subsidised ZA is currently around Rp9,000 per kg. For one\nhectare, cultivation costs reach Rp50 million, with fertiliser\ncontributing nearly 20% of that,\u201d he explained.<\/p>\n
\u201cThus, APTRI urges the government to promptly raise the farmers\u2019\nsugar HPP and regulate non-subsidised fertiliser prices to alleviate the\nburden on farmers.\u201d<\/p>\n
\u201cThe government must set a fixed HET (Maximum Retail Price) for\nsubsidised fertiliser to prevent prices from spiralling out of control,\u201d\nNur concluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/sugarcane-farmers-demand-hpp-increase-to-rp15-500-as-fertiliser-costs-soar-1780150441", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }