Jakarta : President Joko “Jokowi” Widodo marked a significant step towards Indonesia’s agricultural and energy future by symbolically planting the first sugarcane for a new project in Sermayam Indah Village, Merauke Regency, on Tuesday, July 23, 2024, reports Indonesia Business Post.
This event heralds the development of an extensive downstream sugarcane plantation, a sugar factory, and a bioethanol project.
The project, which covers a vast area of 633,763 hectares, is part of the government’s strategic initiatives to enhance national food security and boost renewable energy production.
“Every aspect has been carefully planned, considering the flat terrain and abundant water supply. This presents a significant opportunity to transform Indonesia into a food hub, whether it be for rice, corn, or sugarcane, in Merauke and its neighbouring areas. Sugarcane and corn can be used for sugar and bioethanol,” President Jokowi said in a statement on Thursday, July 25, 2025.
Minister of Investment and Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia accompanied the President. He emphasized that the President’s visit underscores the government’s commitment to food and energy security programs.
“The government aims to achieve a sugar production of 3 million tons per year by 2027. This goal will enable Indonesia to meet its own needs and become self-sufficient in sugar, reducing dependence on other countries,” Bahlil stated. As Chairman of the Task Force for the Acceleration of Sugar and Bioethanol Self-sufficiency in Merauke Regency, South Papua, he highlighted the importance of local support in realizing this project.
Bahlil praised the provincial and regency administrations for their crucial support, which has expedited the project’s progress. He stressed the need for local administrations to involve local entrepreneurs and residents, ensuring economic benefits for the region.
“I am pleased with the project’s progress, thanks to the support of the Acting Governor of South Papua and the Merauke Regent. We rely on them to ensure the involvement of local people and entrepreneurs. A mutual benefit between the plasma and core elements is essential,” Bahlil added.
The National Strategic Project’s (PSN) integrated sugarcane plantation in Cluster 3 includes 600 hectares of ready-to-plant land, 1,500 hectares in the process of land clearing, and infrastructure development, including roads and mechanization. The total investment for PSN’s integrated sugarcane plantations in Cluster 3 in Merauke amounts to US$5.62 billion (Rp 83.27 trillion).
