Video: Losing Out to Imports, Farmers' Sugar Production Remains Unsold

Jakarta, CNBC Indonesia - The Investment Management Agency Daya Anagata Nusantara or PT Danantara Indonesia has revealed losses suffered by PT Sinergi Gula Nusantara (SGN) or Sugar Co throughout 2025, amounting to Rp680 billion, due to a surge in sugar imports that is pressuring local sugar prices. Agrifood Analyst from CNBC Indonesia Research, Emanuella Bungasmara Ega Tirta, noted data showing an increase in sugar imports from 5.069 million tonnes to 5.3 million tonnes. On the other hand, there has also been an increase in domestic sugar production, which is able to meet 40% of national needs. Ega also recorded complaints from domestic farmers regarding the lack of absorption of local production, even though imports are intended to meet the imbalance between production and needs. On the other hand, local sugar prices are also losing competitiveness to imported sugar, further complicating matters for farmers. In addition to the lack of absorption of local farmers’ sugar, it is caused by the leakage of refined sugar for industry into the household market, so it needs to be regulated.