Officially Revitalize The National Sugar Industry, Erick Thohir Encourages PT SGN To Develop Bioethenol To Overcome Fuel Import Issues

SOE Minister Erick Thohir. (Photo: Doc. Ministry of SOEs)

JAKARTA - Minister of State-Owned Enterprises (BUMN), Erick Thohir encourages the development of bioethenol. This step is an effort to follow up on President Joko Widodo's (Jokowi) directives to overcome Indonesia's dependence on world supply chains, especially for the food and energy sectors, especially fuel imports.

The development of bioethanol began with the inauguration of the revitalization of the national sugar industry to support food and energy security in Mojokerto, East Java. The inauguration marks the start of the organizational arrangement of PT Perkebunan Nusantara III (Persero)/PTPN Group through the establishment of PT Sinergi Sugar Nusantara (SGN) which will play a major role in supporting food and energy security. PT SGN is a manifestation of the acceleration of business transformation at PTPN Group Holding which comes from the merger of assets of sugarcane plantation companies owned by PTPN Group, namely PTPN II, PTPN VII, PTPN IX, PTPN X, PTPN XI, PTPN XII and PTPN XIV. PTPN Group integration through the establishment of PT Sinergi Sugar Nusantara, PT Sinergi Sawit Nusantara, and PT Asset Management Nusantara is in accordance with the Regulation of the Coordinating Minister for Economic Affairs Number 9 of 2022 concerning Changes to the National Strategic Project List (PSN). As a single entity of 36 sugar factories (PG) owned by PTPN Group, PT SGN will become the largest sugar company in Indonesia with a projected land expansion of up to 700 thousand hectares in 2028. With this area of land, it is hoped that PT SGN will be able to control 60-70 percent of the national sugar market by 2028. "We hope that PT SGN can meet the national sugar needs, and the welfare of farmers must be part because the opening of 700 hectares of this land is not only PTPN's land, but also in collaboration with farmers," he said in an official statement, Tuesday, October 11. Erick said the revitalization of the national sugar industry carried out by PT SGN included intensification and extensification on farm and off farm. So it is hoped that it will be able to realize the national consumption of sugar self-sufficiency in 2028, and industrial consumption sugar by 2030. For information, in 2021 the production of white crystal sugar (GKP) for the National is 2.35 million tons with a national sugar consumption requirement of 3.12 million tons. Thus, the remaining national sugar needs had to be met through imports of 1.04 million tons equivalent to GKP.

Erick said, the establishment of PT SGN is a solution to accelerate self-sufficiency in consumption sugar, improving the welfare of sugarcane farmers, also maintaining consumption sugar stocks for price stabilization. In addition to efforts for food sovereignty, Erick's pace, PT SGN is also projected to realize energy sovereignty through sugarcane plant-based bioethenol which makes a real contribution to Biofuel as new renewable energy (EBT). "We must also ensure that PT SGN can produce bioethanols so that in the future it can be a solution to solve fuel import problems," he said. In fact, said Erick, his party has also benched with neighboring Brazil, where they have succeeded in pushing sugar derivatives into bioethenol. "If other countries can't, why can't Indonesia," said Erick. In line with the increase in sugar productivity carried out by PT SGN later, sugarcane-based bioethenol production which contributes significantly to biofuels is expected to be able to increase. "We are targeting to be able to produce 1.2 million kiloliters of crude oil (in 2030). Therefore, Pertamina's presence to become off takers is important so that it can be ensured that what is the needs of national farmers and sugars are sustainable with national energy needs by mixing bioethenol to BBM and creating environmentally friendly fuel as we have witnessed in Brazil," he said. Erick said, this is important for substitution of the need for imports of crude oil and used for environmentally friendly vehicle energy mixes. Thus, the state will have an alternative energy to reduce the energy burden of dependence on fuel imports. Furthermore, Erick said to support this, PTPN synergize with Pertamina for biofuel development pilot projects. This is an important step in realizing the provision of bioethenol to the public as a more environmentally friendly vehicle fuel, as has happened in Brazil.