Molasses market in Indonesia

Earlier Report Observations

Indonesia's molasses market volume displayed considerable fluctuation from 2018 to 2023, beginning at 830 thousand tons and contracting sharply to 403 thousand tons by the end of the period. This overall decline was driven by a consistent rise in export volumes, which peaked at 821 thousand tons in 2023, coupled with a gradual reduction in imports. Domestic production remained relatively stable, averaging around 1.2 million tons annually, but failed to offset the outflow to international markets.

The steep market reduction in 2023, where domestic volume halved to 403 thousand tons, was primarily a result of high export demand and limited local processing capacity. Domestic consumption was confined mainly to monosodium glutamate (MSG) and bioethanol, with bioethanol production infrastructure still under development and insufficient for national E10 fuel blending targets. Government policy and state-owned enterprises, including PT Sinergi Gula Nusantara and Pertamina, actively pursued integrated bioethanol projects, such as the 30 thousand kiloliter-per-year plant in Banyuwangi, reinforcing the channeling of molasses toward export and energy applications.

Industry developments by 2025 highlighted a strategic shift toward diversifying molasses into higher-value bioproducts. This was evidenced by concrete plans for an 8 000 ton-per-year polyhydroxybutyrate (PHB) biopolymer plant in Gresik, involving significant investment and advanced fermentation technology. Simultaneously, government policies aimed at achieving sugar self-sufficiency through expanded sugarcane cultivation indirectly secured the long-term supply of molasses as a by-product of the domestic sugar industry.

Production molasses in Indonesia

In kind, 2018-2021, K t

Indonesia ranked 9th globally in molasses production between 2018 and 2021.

Top producers of molasses, 2018-2021

World map of production of molasses, 2018-2021

In 2021, Indonesia produced 1 214 K t of molasses, marking a 2.4% increase from the previous year. Over the 2018-2021 period, production declined by 2.1%, averaging a 0.7% annual decrease. Production peaked in 2019 at 1 275 K t, then dropped to its lowest point in 2020 at 1 185 K t. The sharpest decline occurred in 2020 with a 7.1% fall, while the largest increase was in 2019 at 2.8%.

Annual dynamics of production in Indonesia in kind, 2018-2021, K t

Exports molasses from Indonesia

Exports in kind, K t

In 2021, Indonesia's molasses exports reached 571.6 K t, surging 32.7% compared to 2020. From 2018 to 2021, exports grew by 12%, with an average annual growth rate of 3.8%. Exports hit their highest level in 2019 at 643.4 K t, then fell to a low of 430.7 K t in 2020, which saw the steepest decline of 33.1%.

Annual dynamics of product's exports from Indonesia in kind, 2018-2021, K t

Between 2018 and 2021, the Philippines, South Korea, and Vietnam were the top destinations for Indonesia's molasses exports in volume terms. The Philippines accounted for 49.4% of exports, South Korea for 16.5%, and Vietnam for 10.5%, together making up 76.4% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Indonesia in kind, 2018-2021

Exports in value, K $ US

Indonesia's molasses exports in value terms totaled 96 886 K $ US in 2021, up 27.0% year-on-year. Over the 2018-2021 period, export value increased by 80.1%, with a compound annual growth rate of 21.7%. The largest increase was in 2019 at 56.5%, while the biggest decline occurred in 2020 with a 9.4% drop.

Annual dynamics of product's exports from Indonesia in value, 2018-2021, K $ US

From 2018 to 2021, the Philippines, South Korea, and Vietnam were the main buyers of Indonesian molasses in value terms. The Philippines represented 48.8% of export value, South Korea 14.4%, and Vietnam 10.5%, collectively accounting for 73.6% of total exports.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Indonesia in value, 2018-2021

Imports molasses to Indonesia

Imports in kind, K t

After two years of decline, Indonesia's molasses imports rose in 2021 to 85.9 K t, a moderate increase of 6.4% from the previous year. Between 2018 and 2021, imports decreased by 14.4%, averaging a 5.1% annual decline. Imports reached their lowest point in 2020 at 80.7 K t, which also saw the largest drop of 18.7%.

Annual dynamics of product's imports to Indonesia in kind, 2018-2021, K t

In the 2018-2021 period, Egypt dominated Indonesia's molasses imports in volume terms, absorbing 87.1% of total flows, with the remainder distributed among numerous smaller partners.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Indonesia in kind, 2018-2021

Imports in value, K $ US

Indonesia's molasses imports in value terms grew for the third consecutive year in 2021, with a total of {value_last_year} K $ US imported, showing a 2.6% increase from the previous year. From 2018 to 2021, import value rose by 15.6%, with an average annual growth rate of 5.0%.

Annual dynamics of product's imports to Indonesia in value, 2018-2021, K $ US

Between 2018 and 2021, Egypt accounted for 83.2% of Indonesia's molasses imports in value terms, while the rest was spread across a wide range of smaller countries.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Indonesia in value, 2018-2021