Indonesia Clarifies Refined Sugar Raw Material Imports

RRI.CO.ID, Jakarta - The Ministry of Industry has responded to reports concerning the import of 150,000 tons of raw sugar, known as Raw Crystal Sugar (GKM), for processing into Refined Crystal Sugar (GKR).

Earlier, on Tuesday, September 22, 2026, reports said raw sugar was being imported to be processed into refined sugar for the needs of the food and beverage industry, rather than for public consumption. The Ministry of Industry stressed that there has been no increase in the quota or allocation of raw sugar to refined sugar manufacturers to meet the needs of the food, beverage, and pharmaceutical sectors.

“There has been no change in the allocation of raw materials for the refined crystal sugar industry. The policy and supply volume of raw materials for the refined sugar industry in 2026 remain in accordance with the Commodity Balance set at the end of 2025. In 2025, the realization of raw sugar imports for processing into refined sugar as raw material for the food, beverage, and pharmaceutical industries reached 99.99 percent. In fact, the allocation of raw materials for these industries was reduced in 2026 due to reformulation efforts by several industries related to restrictions on sugar, salt, and fat (GGL),” Ministry of Industry Spokesperson Febri Hendri Antoni Arief, said in an official statement in Jakarta on Wednesday, September 23, 2026.

The Ministry of Industry, as the government agency responsible for industrial development, remains committed to maintaining proper governance over the distribution of industrial sugar.

Sugar is a regulated commodity under Presidential Decree No. 57 of 2004 on the Designation of Sugar as a Commodity Under Government Supervision. The regulatory framework covers three types of sugar: Raw Crystal Sugar (GKM), Refined Crystal Sugar (GKR), and White Crystal Sugar (GKP).

Since 2024, the Ministry of Industry has been committed to regulating and limiting the production of refined crystal sugar and white crystal sugar made from imported raw materials. This commitment was implemented through Minister of Industry Regulation No. 47 of 2024 on Guarantees for the Supply of Raw Materials for the Sugar Industry.

Under the regulation, refined sugar manufacturers may import raw sugar to process it into refined crystal sugar. The refined sugar produced may then only be distributed to industrial users for use as raw materials or auxiliary materials.

“The Ministry of Industry issued Minister of Industry Regulation No. 47 of 2024, which allows refined sugar manufacturers to import raw sugar as a raw material for refined crystal sugar. However, the resulting refined sugar products are not permitted to enter the consumer market for the general public, in order to safeguard the governance of the sugar sector,” Febri said.

Furthermore, Febri said, “The Ministry of Industry upholds the principles of good governance and remains committed to maintaining a conducive and orderly business climate in compliance with applicable laws and regulations. We hope this explanation will help clarify inaccurate reports that have been circulating.”