Figure 2.3 Soybean Production in Indonesia Source: BPS-Statistics Indonesia
2.3.4 Sugar
Similarly, production of sugar in Indonesia has failed to meet national sugar demands. According to Saleh Husin, the Indonesian Minister of Industry, domestic
demand for sugar is about 5.7 million tonnes, consisting of 2.8 million tonnes of white sugar for household consumption and 2.9 million tonnes of refined sugar for
industry. As shown in Figure 5 below, such demand significantly exceeds domestic production which only accounted for 2.58 million tonnes in 2014 Hasibuan 2015.
Low sugar production is mainly caused by inefficient production processes of 100 year old sugar factories leading to limited production capacity and low quality sugar
Hasibuan 2015.
0.2 0.4
0.6 0.8
1 1.2
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Soybean Production
Figure 2.4 Sugar Production in Indonesia Source: BPS-Statistics Indonesia
2.3.5 Wheat
In terms of wheat, Indonesia has become one of the largest wheat importers in the world. The domestic demand for this commodity is high, but farmers are
reluctant to plant wheat on their land due to the inappropriate characteristics of the land and climate in Indonesia for growing wheat. As a consequence, Indonesia
imports wheat in large quantities, at approximately 5.4 million tonnes in 2014, from several countries such as Australia, Canada, USA, Russia, Ukraine, Kazakhstan,
India, Pakistan, Brazil and Argentina Jaramaya 2015.
2.3.6 Crude Palm Oil
In contrast, Indonesia is known as one of the largest crude palm oil exporters in the world dominating the world palm oil production. Palm oil can be used to
produce biodiesel, RBD palm oil refined, bleached and deodorized crude palm oil including cooking oil and margarine, as well as oleochemicals. In 2014, domestic
demand for crude palm oil is about 8.8 million tonnes, consisting of 2.5 million tonnes for biodiesel industries, 4.2 million tonnes for RBD palm oil industries and
0.7 million tonnes for oleochemical industries Fahriyadi and Laoli 2015. As shown in Figure 6 below, domestic production of crude palm oil largely surpasses
domestic consumption. This low domestic demand enables Indonesia to export cooking oil products to several countries including China and India.
0.5 1
1.5 2
2.5 3
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
tho us
an d
to nnes
Sugar Production
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