Indonesian Political, Business & Finance News

Trade Minister Ensures Strict Regulation of Sugar Trade and Ethanol Imports

| Source: ANTARA_ID Translated from Indonesian | Trade
Trade Minister Ensures Strict Regulation of Sugar Trade and Ethanol Imports
Image: ANTARA_ID

Jakarta (ANTARA) - Trade Minister Budi Santoso has assured that the sugar trade and ethanol imports are being strictly regulated through various regulations to maintain supply stability, protect industries, and support the interests of national farmers.

In a working meeting with Commission VI of the House of Representatives (DPR RI) in Jakarta on Wednesday, the Trade Minister stated that the government has designated sugar as a monitored commodity through Presidential Decree Number 57 of 2004, which covers raw crystal sugar (GKM), refined crystal sugar (GKR), and white crystal sugar (GKP).

“The division of sugar types is intended to create market segmentation for sugar, where consumer needs are met through GKP and industrial needs through GKR,” said the Trade Minister.

Under the regulation, sugar imports covering GKM, GKR, and GKP—spanning six tariff positions or HS codes—are subject to restrictions on importers, with GKM and GKR only importable by Producer Importer Identification Number (API-P) holders, and GKP only by state-owned enterprises (BUMN) holding General Importer Identification Number (API-U).

The determination of sugar import volumes is based on the national commodity balance, which serves as the basis for issuing import approvals, with strict oversight through customs documents at border areas.

Furthermore, the domestic trade of refined crystal sugar continues to be regulated under Trade Ministerial Regulation Number 1 of 2019, which has been updated to Trade Ministerial Regulation Number 17 of 2022.

This regulation aims to ensure the availability of industrial raw materials by regulating the distribution of refined sugar so as not to disrupt the consumer sugar market on a broad scale.

The Ministry of Trade also regulates ethanol imports through Trade Ministerial Regulation Number 20 of 2025, updated to Trade Ministerial Regulation Number 32 of 2025 concerning chemicals and fuels.

This policy reinstates provisions on prohibitions and restrictions on ethanol imports, effective from 6 October 2025, to maintain more orderly import governance.

Furthermore, the Trade Minister stated that in 2025, the Ministry of Trade has issued 13 import approvals for other fuels or ethanol, with an allocation of 13,284,141 litres and a realisation of 2,373,594 litres, or 17.87 percent.

“For 2026, up to 30 March, six import approvals for other fuels or ethanol have been issued with an allocation of 6,937,565 litres, and there has been no import realisation so far,” said the Trade Minister.

View JSON | Print