Danantara merges ID FOOD's sugar mills into SGN to achieve sugar self-sufficiency
Jakarta (ANTARA) - The Danantara Investment Management Agency (DPI) is merging ID FOOD’s sugar mills into PT Sinergi Gula Nusantara (SGN) to strengthen the consolidation of the national sugar industry and accelerate the achievement of sugar self-sufficiency targets.
The Head of the SOE Management Agency (BP BUMN) and Chief Operating Officer (COO) of Danantara, Dony Oskaria, explained during a working meeting with Commission VI of the House of Representatives (DPR RI) in Jakarta on Wednesday that there are currently two sugar mill entities: those under Sugar Co as part of the PT Perkebunan Nusantara Group and ID FOOD’s sugar mills.
In line with this strategy, Danantara is pushing for the merger or integration of all ID FOOD’s sugar mills into Sugar Co to create a stronger single industrial entity.
“We want to carry out the consolidation process by merging ID FOOD into SGN,” Dony said.
Through this consolidation, Sugar Co is directed to become a company focused on the agricultural sector as well as sugar manufacturing and other crop commodities in an integrated and sustainable manner moving forward.
Meanwhile, ID FOOD will be focused on its role as a trading company managing the distribution and marketing of food commodities, including sugar, in a more optimal and efficient manner nationally.
This business focus separation is expected to improve the performance of each entity, allowing them to function more effectively in production and distribution within the national sugar supply chain.
In addition, Danantara highlighted the importance of increasing sugarcane land productivity, which is currently deemed suboptimal, thus requiring various improvements in upstream sector management.
Improvements are also being made to sugar mills to enhance efficiency and production capacity, thereby driving overall productivity growth in the national sugar industry on a sustainable basis.
On the other hand, regulatory support is considered crucial for the sugar industry to develop as the backbone of the farmers’ economy, including maintaining selling prices that remain profitable for farmers.
Dony added that the consolidation process between Sugar Co and ID FOOD is targeted to be completed this year, with hopes of finalising it in the second semester according to the prepared plan.
“The consolidation between PTPN or Sugar Co and ID FOOD will be completed this year. Insha Allah, hopefully in the second semester we will complete the consolidation,” he emphasised.
With the completion of this consolidation, Indonesia is expected to have a single sugar mill holding that controls around 60 percent of the national market share to support the acceleration of sugar self-sufficiency.