Minister urges transformation of sugarcane farmer cooperatives

Cooperatives Minister Ferry Juliantoro is encouraging the transformation of sugarcane farmer cooperatives to become more professional, productive, and better governed, given their vital role in the national sugar industry ecosystem. He stated that this transformation should not only be driven by the government but also emerge from the grassroots, from the sugarcane farmers themselves and the community. The remarks were made during a gathering of smallholder sugarcane farmers focused on strengthening the sugar industry ecosystem through cooperative-based synergy involving the LPDB Cooperative fund and PT PG Rajawali I, in support of food security and national sugar self-sufficiency across Java. According to him, the established cooperation between PT PG Rajawali I and sugarcane farmer cooperatives represents an important step in improving farmer welfare whilst simultaneously strengthening the national sugar industry. He said the programme is a continuation of efforts to reinforce and transform sugarcane farmer cooperatives for better governance. He added that support from the LPDB Cooperative includes not only financing but also mentoring, training, and technical guidance for cooperatives. He explained that this assistance is expected to boost the productivity and production volume of smallholder sugarcane. Eventually, the entire harvest will be absorbed by PT PG Rajawali I to be processed into sugar and various derivative products. The resulting sugar production will then be marketed more widely, including through the network of Merah Putih Village/Sub-district Cooperatives currently being developed by the government. The hope is that sugarcane farmer cooperatives can grow on a larger scale, become more professional, and deliver greater economic benefits to their members. Ferry also revealed that the Ministry of Cooperatives will strengthen collaboration with the Ministry of Agriculture to support comprehensive agricultural sector development, spanning food crops, horticulture, and plantations. The synergy between the two ministries is expected to provide solutions to various problems faced by farmers while accelerating the implementation of strategic government programmes. Meanwhile, Deputy Minister of Agriculture Sudaryono affirmed that Indonesia has now achieved self-sufficiency in consumption sugar, meaning it no longer relies on imports to meet public needs. For refined or industrial sugar, he said the government is currently working towards achieving self-reliance, whilst also supporting sugarcane-based renewable energy development. He noted that sugar imports are currently only conducted to meet the needs of refined sugar used by the industrial sector, but all sugar requirements, both for consumption and industry, are gradually being targeted for domestic fulfilment. He concluded that the President’s directive is for all sugar needs, both consumption and refined sugar for industry, to be met from domestic production wherever possible.