Danantara Merges Three ID Food Sugar Factories into PT SGN

Jakarta - Danantara Investment Management Agency (DPI) is transferring sugar factories under ID Food to PT Sinergi Gula Nusantara (SGN), also known as Sugar Co. Chief Operating Officer (COO) of Danantara, Dony Oskaria, stated that the agency intends to consolidate PT Pabrik Gula Rajawali 1, PT Pabrik Gula Rajawali 2, and PT Candi Baru under ID Food into PT SGN. “In line with that process, we want to carry out consolidation through a merger, combining ID Food into SGN,” Dony said during a working meeting with Commission VI of the House of Representatives (DPR RI) at the parliamentary complex in Senayan, Jakarta, on Wednesday (8/4/2026). According to Dony, the transfer of these company assets aims to allow ID Food to focus on operating as a trading company. Meanwhile, PT SGN will focus on becoming an agricultural manufacturing company related to sugar and other crops. “This is deliberately done so that they can focus on their respective core businesses,” Dony stated. Meanwhile, ID Food will focus on becoming a state-owned trading enterprise. “Thus, we can control around 47 percent of the national market share,” said Ghimoyo. He emphasised that ID Food will continue to play an important role in the downstream sector by ensuring that all production from PT SGN is absorbed. According to him, PT SGN, as a subholding under PT Perkebunan Nusantara (PTPN) III, will focus on sugar production. “ID Food focuses on trading and distribution for market stabilisation,” Ghimoyo added. Dony mentioned that in 2025, PT SGN or Sugar Co recorded a loss of Rp 680 billion due to the domestic market being flooded with imported refined sugar. “Sugarco recorded a loss of Rp 680 billion due to unfavourable prices resulting from uncontrolled sugar imports,” said Ghimoyo. He believes that improvements in the governance of the sugar sector must be carried out seriously. He noted that President Prabowo Subianto has requested a restructuring of the national sugar industry. “If we don’t, these meetings will continue endlessly, Madam. But the impact will never be resolved,” said Dony.