The country may not need to import white sugar next year as local producers will be able to meet local demand once a government-funded refinery revitalization program is completed, Trade Minister Mari Elka Pangestu says.

"We won't need to import white sugar next year as the gap in the demand can be offset with the stock," she said.

According to the ministry, national production of white sugar is estimated to reach between 2.7 million and 2.9 million tons this year, while demand is forecast to reach 3.18 million tons.

Mari said the country could save between 1.2 million and 1.3 million tons of refined sugar and white sugar combined annually, although she refused to mention the tonnage of the country's white sugar reserves.

Refined sugar is consumed by the food and beverage industry.

Mari said the stock should be enough for domestic consumption, especially during the milling period from January until April, during which sugar refineries typically import the commodity.

Citing an estimate made by the Indonesian Sugar Council, Mari said the country had this year received a total of 6.2 million tons of white and refined sugar from imports and local production.

Domestic consumption of the two sugar types stands at 4.9 million tons so far this year, leaving some 1.3 million tons in stock, according to Mari.

With the aim to increase domestic production to match domestic demand by 2009, the government will increase production by renovating 52 refineries, most of which are located in Java, Sumatra and Sulawesi.

The government has estimated that Rp 7.9 trillion (US$857.95 million) will be needed to finance the program.

Part of the fund will be financed by banks, including state lenders Bank Rakyat Indonesia and Bank Negara Indonesia, as well as privately owned Bank Central Asia.

The Agriculture Ministry's director general of plantations Ahmad Manggabarani said the program would boost the country's sugar production to 2.7 million tons this year and secure self-reliance next year.

Indonesia, Asia's largest sugar importer, may see its sugar production jump to 3.3 million tons next year.

The government also aims to increase the country's total sugarcane plantation area, mostly by injecting capital into state plantation firm Perusahaan Perkebunan Nusantara (PTPN) to help it acquire and manage more land.

The country's total sugarcane plantation area grew 4.15 percent to 427,000 hectares this year from 410,000 hectares in 2007, and is expected to reach 450,000 hectares by next year, Ahmad said.