Import permit delays disrupt Indonesian sugar refiners’ output

Hanoi (VNA) - At least two major sugar refineries in Indonesia have been forced to halt production after delays in receiving import permits for raw sugar from the government.

The situation has raised concerns about a potential shortage of sweetener supplies in Southeast Asia’s largest economy.

The plants must cease operations after their raw sugar inventories were depleted by the end of 2025 and operators were unable to secure additional supplies.

Indonesia is currently the world’s second-largest sugar importer. The suspension of refinery operations poses a direct threat to supply chains for food and beverage producers. Notably, the disruption comes just ahead of Eid al-Fitr, expected in March, when sugar consumption in Indonesia typically peaks.

Adhi Lukman, Chairman of the Indonesian Food and Beverage Association, warned that any shortage at this time will hit the industry at a critical period as sugar inventories typically reach their lowest levels in January and February each year.

Indonesia depends heavily on imported raw sugar for its refineries, which process the commodity into refined sugar used widely in the country’s food and beverage sector.

The Indonesian government tightly regulates the volume of raw sugar that refineries are allowed to import. The total import quota for the industry in 2026 was set at 3.12 million tonnes. The Ministry of Industry provides recommendations for individual refiners to apply for permits, which are then issued by the Ministry of Trade. This year, the process has been significantly delayed, though reasons remain unclear.

According to the Indonesian Sugar Refiners Association, as of February 7, only seven of its 11 members had received permits to import raw sugar for 2026, covering about 41% of the total annual quota. Analysts said the recent issuance of some permits has led to temporary production disruptions at several refineries./.

VNA