Kick Off Revitalization of the National Sugar Industry

BUMN Minister Erick Thohir kicked off the Revitalization of the National Sugar Industry for Food and Energy Security on Monday (10/10) at the Temugiring Sugar Cane Plantation in Mojokerto, East Java. This kick off also marks the launch of the Sugar Company or PT Sinergi Gula Nusantara which was formed on August 17, 2022. PT SGN is the backbone of food security and one of the drivers of national energy security.

Also present were Minister of Energy and Mineral Resources Arifin Tasrif, Head of BPKP Muhammad Yusuf Ateh, Member VII of BPK Hendra Susanto, Deputy Minister of BUMN I Pahala Mansury, Main Director of PTPN III Nusantara Plantation Holding Mohammad Abdul Ghani, Main Director of Pertamina Nicke Widyawati and Regent of Mojokerto Regency Ikfina Fatmawati.

The overall restructuring of PTPN Group’s sugar business is expected to accelerate sugar self-sufficiency for food sovereignty, as well as encourage the realization of new renewable energy (EBT).
Main Director of Holding Perkebunan Nusantara Mohammad Abdul Ghani said, “We have prepared action plans, achievements and follow-up on the integration of the PTPN Group, particularly through SugarCo, in order to achieve self-sufficiency in sugar consumption in 2028 and industrial sugar in 2030, increasing the welfare of sugarcane farmers through increased productivity and yields, as well as maintaining consumption sugar stocks to stabilize prices.”
SugarCo is a form of accelerating business transformation in the plantation and forestry cluster holding, apart from PalmCo and SupportingCo. As the sole entity of 36 sugar mills (PG) belonging to the PTPN Group, SugarCo will become the largest sugar company in Indonesia with a projected development of national sugar cane fields. Collaborating with Perhutani and sugarcane farmers to reach 700 thousand hectares in 2030. If SugarCo already has the targeted land area, it will be able to control 60% -70% of the national sugar market. It is hoped that this will eliminate sugar imports which have been a problem and concern for sugar cane farmers.