2017, Estimated Sugar Consumption 5.7 Million Tons

The Ministry of Industry estimates that Indonesia's national sugar demand in 2017 will reach 5.7 million tons, a 1.38 percent decrease from the previous year. This figure comprises 2.8 million tons for industrial use and 2.9 million tons for household consumption. Continued growth in the food and beverage industry will lead to a sustained increase in demand for industrial sugar. Mandiri Sekuritas' July 2017 Industry Update projects that the food and beverage industry (represented by the Indonesian Food and Beverage Producers Association, or GAPMMI) will grow by 8 percent this year.

Domestic sugar production is currently estimated at only 2.2 million tons, while demand reaches 5.7 million tons. Therefore, an additional 2.5 to 3 million tons of imported sugar are needed annually. In 2016, the largest volume of imported sugar came from Thailand and Brazil, accounting for 75 percent of total national sugar imports.

From January to May 2017, refined sugar imports totaled approximately 1.2 million tons, or about 76.7 percent of the import permits issued by the Ministry of Trade, which amounted to 1.6 million tons.