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AGI Projects Indonesia’s Sugar Production to Reach 10-Year High in 2026

Indonesia Sugar Production Hits Ten-Year High Indonesia's domestic sugarcane production is projected to reach 2.8 million tons in 2026, marking the highest volume recorded in approximately a decade, according to the Asosiasi Gula Indonesia (AGI). Dwi Purnomo, secretary-general…

AGI Projects Indonesia's Sugar Production to Reach 10-Year High in 2026

Indonesia Sugar Production Hits Ten-Year High

Indonesia’s domestic sugarcane production is projected to reach 2.8 million tons in 2026, marking the highest volume recorded in approximately a decade, according to the Asosiasi Gula Indonesia (AGI).

Dwi Purnomo, secretary-general of AGI, stated on Tuesday, November 10, 2026, that production leading up to the final milling season has already reached 2.6 to 2.7 million tons.

Policy Demands and Import Restraints

Dwi Purnomo warned that increased output must be matched by adequate local absorption policies to prevent domestic price drops and protect farmers’ incomes, as reported by bataviapos.id.

National Sugar Production Expected to Reach 2.8 Million Tons by 2026, AGI Reveals Driving Factors

Echoing these concerns, Soemitro Samadikoen, chairman of the National Leadership Council of the Indonesian Sugarcane Farmers Association (DPN APTRI), urged authorities not to increase the import quota for raw crystal sugar (GKM) for 2027. According to Kompas.com and ANTARA News Yogyakarta, APTRI confirmed that national supplies of white crystal sugar (GKP) remain sufficient and that no scarcity exists among consumers.

Incentives and Factory Modernization

Dwi Purnomo stated that production components such as subsidized People’s Business Credit (KUR) interest rates must be maintained to encourage farmers to expand planting areas, as reported by Kompas.com.

AGI Projects Indonesia's Sugar Production to Reach 10-Year High in 2026
Photo: Kompas

“Komponen-komponen produksi yang selama ini sudah dijaga, misalnya untuk petani dengan subsidi bunga KUR dan sebagainya, itu jangan dihilangkan,” said Dwi Purnomo, secretary-general of AGI.

Meanwhile, Januardi Haribowo, secretary-general of the Asosiasi Gula Rafinasi Indonesia (AGRI), confirmed that association members will adhere to government policies to fulfill refined sugar needs for domestic downstream industries, according to ANTARA News Yogyakarta. Alongside financial incentives, AGI highlights three operational priorities for long-term growth: land intensification, ratoon crop rejuvenation, and factory performance upgrades.

Agriculture Minister to Halt Sugar Imports, Domestic Production Must Meet Demand

What questions does APTRI have about sugar production and imports?

What specific policy did APTRI demand regarding 2027 imports?

DPN APTRI Chairman Soemitro Samadikoen requested that the government refrain from adding to the import quota for raw crystal sugar (GKM) in 2027, ensuring the volume remains at least equal to 2026 levels to protect local harvests, according to Kompas.com and ANTARA News Yogyakarta.

“Impor GKM untuk tahun 2027 jangan ditambah, setidaknya sama dengan tahun 2026,” said Soemitro Samadikoen, chairman of the National Leadership Council of the Indonesian Sugarcane Farmers Association (DPN APTRI).

AGI Projects Indonesia's Sugar Production to Reach 10-Year High in 2026
Photo: ANTARA News Yogyakarta

Which financial support mechanism do sugarcane farmers rely on for expansion?

The Asosiasi Gula Indonesia highlighted subsidized KUR (Kredit Usaha Rakyat) interest rates as a vital financing tool that helps ease production costs and encourages farmers to expand their sugarcane cultivation areas, as reported by Kompas.com.

About the author: Marcus Liu - Business Editor

MBA and ex‑B bureau chief specializing in global finance and fintech. Marcus speaks Mandarin, Japanese, and English, and has interviewed CEOs from the Fortune 50 to Y‑Combinator unicorns. Marcus Liu delivers sharp analysis on markets, startups, and corporate strategy for investors and entrepreneurs alike.