JAKARTA, RAKYAT NEWS— Deputy Minister of Investment/Deputy Head of the Investment Coordinating Board (BKPM) Yuliot Tanjung announced that the Indonesian government is preparing to offer import duty exemptions on machinery for agricultural companies to support food and energy security programs in the country

“The machinery import facilities for the agricultural sector currently do not exist. At present, these imports must go through normal mechanisms, paying import duties. However, for our future needs, particularly in developing food and energy security, the agricultural sector should be included as a sector eligible for these facilities,” said Deputy Minister Yuliot in Jakarta

He noted that the planned import duty exemption is also intended to promote investment projects in the agricultural sector, such as the ongoing integrated sugarcane plantation development in Merauke, South Papua, which includes sugar industry, bioethanol production, and power generation.

He explained that the development of the sugarcane plantation and sugar industry in Merauke has already reached the third cluster, covering an area of 2 million hectares. Therefore, through the machinery import duty exemption, it is hoped that Indonesia’s food self-sufficiency can be accelerated, ensuring the success of this project.

“The development of the third cluster sugar industry is planned to include the construction of five factories integrated with bioethanol production.

Infrastructure and funding for training in Merauke Regency have been prepared by the business actors to involve the local community. Additionally, the Indonesian Sugar Plantation Research Center (P3GI) has been established, along with a collaboration with Sugar Research Australia (SRA),” he stated.

The total planned investment for the integrated sugarcane plantation aiming for sugar and bioethanol self-sufficiency in the third cluster in Merauke, South Papua, amounts to USD 5.62 billion, or approximately IDR 83.27 trillion.

This investment includes IDR 29.2 trillion for the sugarcane plantations using mechanized agricultural technology, IDR 53.8 trillion for the construction of five sugar and bioethanol factories, IDR 120 billion for the development of human resource training centers, and IDR 150 billion per year for the establishment of research and innovation facilities.

There are five cluster areas totaling more than 2 million hectares designated for the development of integrated sugar and bioethanol self-sufficiency. Cluster one and two cover 1 million hectares, cluster three approximately 504,373 hectares, and cluster four 400,000 hectares. (Uki Ruknuddin)