2017 Sugarcane Productivity Only 5.5 Tons per Hectare

National sugarcane productivity in 2017 was estimated at only 5.4 tons per hectare (ha). This figure is lower than the 2016 projection of 7.75 tons per ha from a production of 2.72 million tons with a land area of 473,000 ha. Low sugarcane productivity, coupled with increasing sugar consumption, has forced Indonesia to import sugar from abroad.

Indonesia's sugarcane productivity lags behind that of Malaysia and Thailand. According to the 2016 Sugarcane Outlook, Malaysian sugarcane productivity from 2009-2013 reached 49.47 tons per ha, while Thailand's reached 7.61 tons per ha.

For information, the government ultimately decided to cancel the 10 percent value-added tax (VAT) on sugarcane farmers due to opposition from various parties, including the Indonesian Sugarcane Farmers Association (APTRI). This provision was deemed detrimental to farmers due to low yields and productivity. Furthermore, farmers are burdened by high production costs. The addition of a maximum retail price (MRP) for sugar further burdens sugarcane farmers.