Indonesia plans to develop the sugar industry in Papua.

Indonesia, the world's largest importer of sugar, plans to increase the planting of sugarcane in its eastern region of Papua with the aim of reducing imports and developing the sugar industry, including the production of bioethanol, the cabinet minister stated on Monday.

Plans to increase sugar production

The plans were announced amid rising domestic sugar prices due to tight stocks as last year's dry spell caused by the El Niño weather phenomenon damaged crops. The Indonesian government in 2022 set a goal of becoming self-sufficient in sugar by 2027. In order to achieve this, plantations need to be significantly expanded. The government has set aside 2 million hectares (4.9 million acres) of land in Merauke, South Papua province, for an industrial zone to plant sugarcane, mills, a bioethanol plant and a biomass plant, Investment Minister Balkhil Lahadalia told reporters.

Internal price of sugar

“At the first stage, two million seedlings from Australia will arrive in the planting area,” said Balkhil, adding that the project will be led by domestic companies, including state-owned firms. Details about the timeline for developing the industrial zone were not provided.