Indonesia is establishing a holding company for state-controlled sugar mills and aims to cut imports and increase production of white sugar to 1.8 million tonnes by 2024, the chief executive of the state plantation company said on Sept 20.
Sugar mills under the state plantation group PT Perkebunan Nusantara 3 (PTPN 3) are estimated to produce 800,000 tonnes of white sugar this year, and by 2030, production is targeted to be expanded to 2.6 million tonnes, chief executive Mohammad Abdul Gani told parliament members.
“By increasing production, we can reduce imports, save on forex reserves and reach food self-sufficiency,” he said.
PTPN 3 is currently transferring its assets to the new holding company, which will invest around 20 trillion rupiah ($1.40 billion) for expansion, including for new mills, Gani said.
National plantation holding firm PT Perkebunan Nusantara III (PTPN III) established SugarCo, officially named PT Sinergi Gula Nusantara, on Aug. 17 by placing 35 sugar factories – previously owned by seven PTPN III subsidiaries – under the new company.
The government appointed PTPN III as the holding entity for 13 PTPN sister companies in 2014. The companies, which claimed combined assets of Rp 69.3 trillion (US$4.86 billion) during their merger, vary in product offering and operating area.