Bulog Ready to Distribute Blora Farmers' Sugarcane to BUMN Factory
JAKARTA, KOMPAS.com - The state-owned company, PT Perum Bulog, is ready to distribute the harvest of smallholder sugarcane plantations in Blora to PT Sinergi Gula Nusantara (SGN), a subsidiary of PT Perkebunan Nusantara (PTPN). That state-owned enterprise subsidiary is spread across several regions in Central Java.
Bulog’s President Director, Ahmad Rizal Ramdhani, stated that this step is taken to strengthen the national food ecosystem and ensure that smallholder sugarcane products are absorbed by the domestic industry.
“We are committed to being present among farmers, including in Blora, to ensure that their sugarcane harvest can be properly channelled to sugar factories,” Rizal said in his official statement on Thursday (2/4/2026).
Bulog then views the aspirations of those farmers as important to be heeded by all parties to improve the governance of national sugarcane and sugar trade so that it favours farmers.
Rizal said that Bulog will continue to coordinate with various stakeholders, including other state-owned companies, PTPN, and PT SGN, so that smallholder sugarcane products are absorbed.
Through this policy, Rizal hopes that various negative views that have developed can subside and at the same time prove that the state is present in maintaining food stability and farmer welfare.
The distribution of sugarcane to state-owned companies is expected to provide greater profit value for farmers.
“Thus providing added value and market certainty for farmers,” Rizal stated.
They deployed dozens of trucks and hundreds of people in Blora Town Square.
The farmers demanded that PT Gendhis Multi Manis (GMM), a Bulog subsidiary, must operate in 2026, overhaul its management, or be sold if it cannot manage.
One sugarcane farmer from Tanjung Village, Ngaringan, said that they had signed a cooperation agreement with PT GMM.
However, the machine damage has caused sugarcane from a 67-hectare plantation to not be able to be milled at that factory.
“We are affected because we cannot harvest the sugarcane. We hope the factory can operate again,” he said when met by Kompas.com, during the protest.