Realize The Independence Of National Sugar, Erick Thohir Forms Of SugarCo

The Minister of SOEs, Erick Thohir. (Photo: Doc. Antara)

JAKARTA - The government through the Ministry of SOEs continues to strive to maintain food and energy security amid the threat of global uncertainty. One of them is in sugar commodities.

To increase sugar production and downstream, the Ministry of SOEs makes a breakthrough by forming SugarCo.

SOE Minister Erick Thohir said the move was in line with President Joko Widodo's (Jokowi) priorities, which always emphasizes ecosystem development and reduces dependence on world supply chains for the food and energy sectors.

"The Ministry of SOEs really encourages Indonesian food and energy security, according to President Jokowi's direction. SugarCo or sugar mill holding is part of the transformation of Plantation Holding," he said, quoted from his official Instagram @erickthohir, Monday, October 10.

Erick said the purpose of the establishment of SugarCo was not only to meet national sugar needs, but also to improve the welfare of sugarcane farmers, to maintain the stability of farmers' sugar prices.

Furthermore, Erick said, SugarCo will also later become a producer of bioethenol which is a derivative of sugarcane as a mixture of fuel oil (BBM).

"SugarCo PTPN synergizes with Pertamina, in a trial of developing bioethenol to be mixed with fuel, so that it is more environmentally friendly. God willing, the food and energy ecosystem that we build can strengthen food security and national energy," he said.

Erick targets that with this synergy, national sugar production, which previously was only 2.35 million tons, will increase to 4.73 tons and continue to increase to reach 5.7 million tons.

In addition, Erick also encouraged the increase in farmers' income from Rp. 13.1 million per hectare (ha) to Rp. 32.1 million per ha.

"Of course this must be gradual. Because fertilizer is needed, the seeds, and the offtaker. We also encourage this to produce 1.2 million kiloliters of crude oil, and Pertamina is expected to become an offtaker as well. So that there is certainty for farmers," he said.