Several state-owned enterprises are undergoing transformation under\nthe oversight of the State-Owned Enterprises Regulatory Agency (BP BUMN)\nand the Nusantara Future Investment Management Agency (Danantara).<\/p>\n
PT Pupuk Indonesia (Persero) and ID Food, the holding company for\nstate-owned food enterprises, are also targets. However, they face\ndifferent fates. Pupuk Indonesia is encouraged to expand, while ID Food\nis being stripped down.<\/p>\n
Pupuk Indonesia, whose main business line is fertiliser and which is\npioneering an ash soda business, has been asked to build two methanol\nplants. Methanol is an alcohol that serves as a reactant converting\ncrude palm oil (CPO) into fatty acid methyl ester (FAME) biodiesel for\ndiesel blending.<\/p>\n
President Director of PT Pupuk Indonesia, Rahmad Pribadi, said on\nTuesday (7 April 2026) that the government has assigned the company to\nbuild two methanol plants to support the mandatory B50 programme (50 per\ncent blending of CPO-based biodiesel with 50 per cent diesel).<\/p>\n
Danantara has approved the proposal for the construction plan of the\ntwo methanol plants. The plants will be built in Lhokseumawe, Aceh, and\nBontang, East Kalimantan, with each having a methanol production\ncapacity of 1 million tonnes.<\/p>\n
\u201cThe locations are already set. The feasibility studies are complete.\nThe memorandum of understanding for gas supply has been signed with\nMubadala Energy, while progress is ongoing with PT Pupuk Kalimantan\nTimur,\u201d he stated during a hearing with Commission IV of the House of\nRepresentatives (DPR) in Senayan, Jakarta.<\/p>\n
According to Rahmad, the methanol requirement for the mandatory B40\nin 2025 is around 1.8 million tonnes. With domestic methanol production\ncapacity at only 400,000 tonnes, Indonesia still needs to import about\n1.4 million tonnes of methanol.<\/p>\n
The implementation of mandatory B50 will significantly increase\ndomestic methanol needs to around 2.9 million tonnes. \u201cWithout an\nincrease in domestic methanol production capacity, methanol imports will\nrise from 1.4 million tonnes to 2.5 million tonnes,\u201d he said.<\/p>\n
In addition to the ethanol plants, Rahmad continued, Pupuk Indonesia\nis also revitalising seven fertiliser plants. One plant has been\ninaugurated, three are entering the construction process, and the other\nthree are in preparation for construction.<\/p>\n
The revitalisation of these fertiliser plants is linked to the\nissuance of Presidential Regulation (Perpres) No.\u00a0113 of 2025, which\namends Perpres No.\u00a06\/2025 on the Governance of Subsidised Fertilisers.\nThe new regulation promotes transparency and savings in the national\nfertiliser industry.<\/p>\n
On 18 February 2026, Senior Vice President of Sales Strategy and\nCustomer Service at Pupuk Indonesia, Asep Saepul Muslim, stated that the\nnew regulation enables savings for the company. The saved funds will be\nallocated to revitalise plants and keep fertiliser prices\naffordable.<\/p>\n
Through the new regulation, the mechanism for claiming subsidised\nfertiliser, previously based on production costs, is now market-price\nbased. Additionally, payments for procuring subsidised fertiliser raw\nmaterials are realised by the government at the beginning or before the\nproduction and distribution of subsidised fertilisers.<\/p>\n
\u201cWith this change, Pupuk Indonesia no longer has to bear the burden\nof interest on working capital financing,\u201d Asep said during a webinar\ntitled \u201cDissecting Perpres No.\u00a0113 of 2025 on the Governance of\nSubsidised Fertilisers\u201d organised by Sinar Tani.<\/p>\n
ID Food faces a different fate. Several of the state-owned food\ncluster\u2019s main business lines are being stripped away. Some shares are\nbeing released to PT Sinergi Gula Nusantara (SGN) or Sugar Co and PT\nPerkebunan Nusantara (PTPN). Others are even being absorbed by\nDanantara.<\/p>\n
Since its launch on 12 January 2022, ID Food has become the parent of\nfive companies and 11 subsidiaries. The five companies are PT Perusahaan\nPerdagangan Indonesia, PT Sang Hyang Seri, PT Perikanan Indonesia, PT\nBerdikari, and PT Garam.<\/p>\n
The subsidiaries consist of PT Pabrik Gula (PG) Rajawali I, PT PG\nRajawali II, PT PG Candi Baru, PT Perkebunan Mitra Ogan, PT Laras Astra\nKartika (Laskar), PT Mitra Kerinci, PT Rajawali Nusindo, PT GIEB\nIndonesia, BGR Logistik Indonesia, PT Mitra Rajawali Banjaran, PT\nRajawali Citramass, and PT Rajawali Tanjungsari Engineering.<\/p>\n
In ID Food\u2019s presentation material, it is stated that PG Rajawali I,\nPG Rajawali II, and PG Candi Baru will be managed by SGN. ID Food\u2019s\nplantation companies, namely Mitra Kerinci and Laskar, will also come\nunder PTPN.<\/p>\n
Additionally, PT Garam, PT Berdikari, PT Perikanan Indonesia, and PT\nSang Hyang Seri will be managed by Danantara. The transfer of these\nsubsidiaries uses a share divestment mechanism with an exclusive\nmanagement rights scheme to ID Food as the offtaker or buyer of the\nproducts produced by these companies.<\/p>\n
This is done as part of ID Food\u2019s transformation into a trading and\ndistribution company for various foods. Thus, ID Food\u2019s upstream food\nproduction role is being shed. It is also stated that this\ntransformation is carried out in accordance with Danantara\u2019s directives\nin portfolio arrangement and refocusing BUMN businesses.<\/p>\n
This aligns with Danantara\u2019s strategy for clustering BUMN\nportfolios.<\/p>\n
Finance and Strategy Director of ID Food, Susana Indah Kris Indriati,\nexplained that the divestment process for the three sugar mills has\nentered the final stage. ID Food hopes a final agreement can be reached\nin April 2026.<\/p>\n
Additionally, two other subsidiaries, Mitra Kerinci and Laskar, will\nalso be managed by PTPN. All plantations of these two companies will\nalso be transferred to PTPN.<\/p>\n
\u201cThis is in line with Danantara\u2019s strategy for clustering BUMN\nportfolios,\u201d Indah said during a hearing with Commission VI of the\nIndonesian House of Representatives (DPR RI) held hybrid in Senayan,\nJakarta, on Monday (30 March 2026).<\/p>\n
She added that several subsidiaries that own<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/pupuk-indonesia-expands-id-food-stripped-down-1775634745", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }