The Task Force for the Acceleration of Sugar and Bioethanol Self-Sufficiency, chaired by Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia, held its first meeting on Tuesday, April 30, 2024, discussing task sharing with relevant ministries/institutions that President Joko Widodo had appointed to also take a role in encouraging the acceleration of sugarcane commodity investment.

"This is a follow-up to our limited meeting two months ago, which decided to consolidate the acceleration of sugar self-sufficiency. Otherwise, we will continue to import sugar. We will also encourage sugar development into bioethanol,” Bahlil said on Thursday, May 2, 2024.

In accordance with Presidential Decree No. 15/2024, the task force was formed to accelerate the facilitation of investment in sugarcane commodities integrated with the sugar industry, bioethanol, and biomass power plants in Merauke Regency, South Papua Province.

There are four regional clusters with a total of more than two million hectares (ha) of plot of land designated as the development area for bioethanol-integrated sugar self-sufficiency. Clusters 1 and 2 will occupy about 1,000,000 ha, cluster 3 about 500,000 ha, and cluster 4 about 400,000 ha.

Bahlil cited that the total investment plan for Cluster 3, which is offered to private companies, at US$5.62 billion (Rp83.27 trillion).

Bahlil said further that this will be such a large investment that interested investors must have real credibility. He also added that every interested investor is required to fulfill the rights of the customary people there.

"The plantation will be technological, using machines, while the factory will be on a large scale. In the future this investment should involve local people. Don't let the investors grow but the people die. We want it to be fair. We want the investors to prosper, while the state, the region and the people will also get the results. So the concept is to grow together," he said.

Bahlil revealed that the Indonesian Quarantine Agency has tested sugarcane seeds imported directly from Australia. It is hoped that these seeds are of superior types that can produce quality sugarcane plants. The implementation of the sugar and bioethanol self-sufficiency investment is expected to be completed in 2027.