Cooperative Minister Encourages Sugarcane Farmers to Become Shareholders in Sugar Factories Through Cooperatives
One of the strategic steps proposed is the ownership of cooperative shares in sugar factories under the auspices of PT Perkebunan Nusantara (PTPN) and PT Rajawali I,” said Ferry, in a written statement, Friday (15/5/2026).
This was conveyed by Ferry when attending the Annual Members’ Meeting (RAT) of KPSTR Malang Regency for the 2025 Book Year, held in Yogyakarta. KPSTR plays a strategic role in supporting the national food security program, especially through strengthening the people’s sugar sector.
“KPSTR is not only a forum for sugarcane farmers, but also encourages the creation of a more integrated, modern, and sustainable business system,” said Ferry.
In addition, strengthening KPSTR is also aimed at improving the welfare of sugarcane farmers. Through professional and member-based business management, farmers not only play a role as producers, but also become part of the business owners who enjoy the added value from the entire production chain.
“Thus, cooperatives become an important instrument in creating economic independence for farmers while strengthening the foundation of the people’s economy,” said Ferry.
Responding to the issue of capital, Ferry asked LPDB cooperatives to design more adaptive and innovative financing schemes. Not only in terms of more competitive margins/interest rates, but also in financing patterns that can accommodate the dynamics of the dynamic sugarcane business ecosystem.
He hopes that guarantees for the development of cooperative businesses do not have to be limited to land certificates, but can use other assets such as people’s sugarcane.
Ferry hopes that the success of the collaboration between KPSTR Malang and PT Rajawali I can become a model or ‘clone’ for other regions in Indonesia. With the strengthening of this ecosystem, he is optimistic that cooperatives will return to being a pillar of the national economy that is able to face global challenges.
Meanwhile, the President Director of PT Rajawali I, Danianto, expressed his deep appreciation for the close synergy that has been established between the company and the Cooperative of Secondary Sugarcane Producers (KPSTR) of Malang Regency.
“Thank you to Mr. Minister of Cooperatives and the Chairman of KPSTR. Thank God, there have been many discussions earlier regarding PT Rajawali I and its staff,” said Danianto.
Then, the General Chairman of the Board of the Cooperative of Secondary Sugarcane Producers (KPSTR) of Malang Regency, Hamim Kholili, reaffirmed his commitment to maintaining the existence of cooperatives in the midst of the dynamics of the national sugar industry. Hamim emphasized that the main strength of KPSTR lies in the loyalty of its members who come from the ‘lower class’ or people’s sugarcane farmers.
He appreciated Ferry’s call to encourage cooperatives not only to be spectators, but also to have a share of ownership in state-owned sugar factories (PTPN and PT Rajawali I). According to him, without active involvement and strategic ownership, the position of sugarcane farmers will be vulnerable to being displaced by large industrial forces. (akn/ega)