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Kamis, 02 Mei 2024

Task Force for Accelerating Sugar and Bioethanol Self-Sufficiency Holds First Meeting at the Ministry of Investment and Downstream Industry

Jakarta, May 2, 2024 – The Task Force for Accelerating Sugar and Bioethanol Self-Sufficiency, chaired by the Minister of Investment and Downstream Industry/Head of the Ministry of Investment and Downstream Industry/BKPM, Bahlil Lahadalia, held its first meeting on Tuesday afternoon (April 30) at the Ministry of Investment and Downstream Industry/BKPM office in Jakarta. The meeting aimed to assign initial responsibilities to relevant ministries and agencies, which were also designated by President Joko Widodo to play a role in promoting the acceleration of sugarcane commodity investments.

“This is a follow-up to the limited cabinet meeting two months ago, which was also attended by the Head of the Quarantine Agency at the time. The meeting involved the Minister of State-Owned Enterprises, Minister of Environment and Forestry, Coordinating Minister for Economic Affairs, and Minister of Home Affairs, if I’m not mistaken. It was decided to consolidate efforts for accelerating sugar self-sufficiency because, based on current practices, we still rely heavily on imports. We will also push for bioethanol production. Given the increasing demand for accelerated development, this task force has been established,” explained Bahlil.


In accordance with Presidential Decree No. 15 of 2024, issued on April 19, 2024, the task force was formed to facilitate investment in sugarcane commodities integrated with sugar, bioethanol, and biomass power plants in Merauke Regency, South Papua Province. There are four regional clusters covering a total area of over two million hectares designated for developing integrated sugar and bioethanol self-sufficiency. Cluster 1 and Cluster 2 span approximately 1,000,000 hectares, Cluster 3 covers about 504,373 hectares, and Cluster 4 encompasses around 400,000 hectares. The total planned private sector investment for the integrated sugarcane plantations in Cluster 3 is estimated to reach USD 5.62 billion (IDR 83.27 trillion).


The Minister of Investment and Downstream Industry emphasized that this would be a significant investment, requiring credible investors to participate. He also noted that any investor wishing to engage in the project must be able to respect and fulfill the customary rights of the local communities.


“The plantations will employ advanced technology, using machinery. The factories will also operate on a large scale, and this investment must involve local communities. We cannot have a scenario where investors thrive while local communities suffer—this is unacceptable! We want fairness. We want investors to grow, the state to benefit, the region to benefit, and the people to benefit. The concept is growth for all,” Bahlil stated.


Bahlil also mentioned that the Indonesian Quarantine Agency has tested sugarcane seeds imported directly from Australia. These seeds are expected to serve as superior seeds capable of producing high-quality sugarcane crops. The sugar and bioethanol self-sufficiency investment project is expected to be completed by 2027.


For further information, please contact:

Ricky Kusmayadi

Head of Communications and Information Services Bureau

Ministry of Investment and Downstream Industry/BKPM

E-mail: rickykusmayadi@bkpm.go.id

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