Jakarta, Sept 24 - Indonesia's sugar production target of 2.8 million tonnes this year will be sufficient to meet domestic consumption, Agriculture Minister Anton Apriyantono told Reuters on Thursday.
But Indonesia, which is Southeast Asia's biggest sugar consumer, will still need additional imports of raw sugar to produce white sugar for the food and beverage industry, the minister added.
"God willing, our output target will be reached. The output will be enough for consumption. Imports will be mainly to cover shortage for industry needs," said Apriyantono, whose current term as minister ends October when the next government under President Susilo Bambang Yudhoyono takes office.
Indonesia has been scaling back imports of white sugar for direct consumption after local production exceeded demand.
But due to the recent spike in global sugar prices, domestic sugar prices have surged to a record above 11,000 ($1.14) rupiah per kg and the government has been looking for ways to increase sugar supplies as it struggles to ease the price rises.
Among measures being considered, is a plan to temporarily cut import duties for raw and white sugar, which are at 50 percent and 73 percent respectively, in an effort to boost stocks.
The government is also considering allowing state plantations firms to buy 180,000 tonnes raw sugar, which will be processed into refined sugar for direct consumption.
Sugar is a politically sensitive commodity in Indonesia. Shortages of essential food items, including the sweetener, triggered food riots in the final years of former President Suharto in late 1990s.