Jokowi Sets New Targets for Sugar Production and Self-Sufficiency in Indonesia
Jakarta, CNBC Indonesia – President Joko Widodo (Jokowi) has set new targets for sugar production and self-sufficiency in Indonesia. In addition, Jokowi is also targeting the supply of bioethanol, a biofuel derived from sugarcane.
These targets are stipulated in Presidential Regulation (Perpres) No 40/2023 concerning the Acceleration of National Sugar Self-sufficiency and Provision of Bioethanol as Biofuel, which was promulgated and became effective on June 16, 2023.
The Perpres was issued in an effort to achieve national self-sufficiency in sugar, ensure national food security, availability of industrial raw materials and auxiliary materials, as well as encourage improvements in the welfare of sugarcane farmers. Therefore, efforts to accelerate national self-sufficiency are necessary.
Furthermore, in order to achieve energy security and implement clean energy through the use of biofuels, it is necessary to increase the production of bioethanol derived from sugarcane.
“The achievement of sugar self-sufficiency for consumption needs as referred to in Article 1 paragraph (2) is realized no later than 2028,” reads Article 3 paragraph (3) of Presidential Decree No 40/2023, quoted on Tuesday (20/6/2023).
Additionally, Article 3 paragraph (4) stipulates that achieving self-sufficiency in sugar for industrial needs as referred to in Article I paragraph (2) is realized no later than 2030.
Meanwhile, the target is to increase bioethanol production by 2030. To achieve this, the President has ordered the preparation of a roadmap by the Coordinating Minister for the Economy, who will coordinate with ministries/agencies, state-owned enterprises (BUMN), related parties, and local governments.
The roadmap is expected to be completed no later than 6 months after the enactment of Presidential Regulation No. 40/2023. It will contain efforts to increase national sugarcane productivity to 93 tons per hectare, compared to the current national average of around 70 tonnes per hectare.
Previously, the target for sugar self-sufficiency was set to be achieved in 2024, after being delayed from the original target in 2020. The Ministry of Agriculture (Kementan) established a program of intensification and extensification of sugarcane fields in 2019 to achieve self-sufficiency in sugar.
Currently, Indonesia is listed as the largest sugar importer in the world. Data from the US Department of Agriculture (USDA) shows that Indonesia’s sugar imports in 2022/2023 will reach 5.8 million tons, up from 5.46 million tons in 2021/2022. Indonesia occupies the first position as a world sugar importer, followed by China, which imports 4.4 million tons in the 2022/2023 period.
This year, Indonesia is predicted to import around 5.6 million tons of sugar, including raw sugar for consumption and refined sugar, as well as government-assigned consumption sugar.
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What impact will the increase in bioethanol production from sugarcane have on Indonesia’s energy security and sustainability goals
Indonesia’s President Joko Widodo, commonly known as Jokowi, has set new targets for sugar production and self-sufficiency in the country. This announcement was made through Presidential Regulation No 40/2023, which aims to accelerate national sugar self-sufficiency and promote the production of bioethanol derived from sugarcane.
The regulation, which was promulgated and became effective on June 16, 2023, is designed to ensure national food security, availability of industrial raw materials, and improve the welfare of sugarcane farmers. It highlights the importance of achieving sugar self-sufficiency to meet domestic consumption needs.
To further enhance energy security and promote the use of clean energy, the regulation also emphasizes the need to increase the production of bioethanol derived from sugarcane. Bioethanol is a biofuel that can be used as an alternative to fossil fuels, contributing to a more sustainable energy sector.
President Jokowi’s targets aim to address the current situation in Indonesia, where the country has 180,000 hectares of sugarcane plantations. These targets are part of a comprehensive strategy to achieve sugar self-sufficiency within five years, as outlined in the regulation.
By setting these new targets, President Jokowi demonstrates his commitment to ensuring national sugar self-sufficiency, promoting the use of bioethanol, and driving improvements in the welfare of sugarcane farmers. These measures are vital for Indonesia’s agriculture sector and overall economic growth.
Jokowi’s targets for sugar production and bioethanol in Indonesia are a crucial step towards achieving self-sufficiency and clean energy. This ambitious initiative not only strengthens the country’s agricultural sector but also promotes the use of renewable energy sources, benefiting both the economy and the environment. Kudos to Jokowi for his forward-thinking approach in ensuring a sustainable future for Indonesia.