Policy and action plan to increase national sugar production

Abstract

As a national strategic commodity, sugar sufficiency has become one of the government’s priorities. However, until recently, Indonesia is still experiencing a deficit in sugar due to production and consumption gaps. This paper aims to assess the performance of national sugar production and consumption and the government’s efforts to overcome the shortage. This study used primary and secondary data. Descriptive qualitative and Grid analysis was employed, supported by a literature review from various relevant sources. The study results show that during the 2015–2020 period, national sugar consumption was higher than its production. The low national sugar production was due to (1) a decrease in sugarcane area, (2) stagnation of sugarcane yield and sugar content, (3) not optimal process of modernization and revitalization of sugar mills, and (4) policies related to trade and prices of sugarcane and sugar. Out of nine policy options to increase sugarcane yield, the use of sugarcane seedlings of high-yielding varieties has become a priority policy. An action plan is required to support such policy, i.e., structuring of variety; coordination, technical guidance, socialization, and extension; and government assistance programs, especially capital aid.