People's Sugarcane Farmers' Association Blames Sugar Co's Losses on Uncreative Management

Jakarta, VIVA – The national sugar industry is once again in the spotlight following reports of a Rp 680 billion loss at the state-owned enterprise PT Sinergi Gula Nusantara (SGN), or Sugar Co.

The General Chairman of the Indonesian People’s Sugarcane Farmers’ Association (APTRI), Soemitro Samadikoen, assesses that this loss is not merely a technical management issue, but the tip of the iceberg of the chaotic governance of the sugar industry from upstream to downstream.

Therefore, he urges the government to conduct a total evaluation of PT SGN’s performance. According to him, the failure to achieve sugar self-sufficiency for years is due to irrational policies that ignore the realities at the farmer level.

In response to the Hearing Meeting (RDP) between the Ministry of Agriculture and Commission VI of the House of Representatives (DPR RI) regarding SGN’s losses, Soemitro emphasises that the red-plate company holds the people’s trust. A loss of Rp 680 billion should serve as a loud alarm for the government.

“SGN belongs to the people. How could it incur such a huge loss? Was there no evaluation conducted in every period or time interval?” said Soemitro in his statement on Tuesday, 14 April 2026.

He refutes claims that the loss was caused by import factors. For him, there is an issue of uncreative management in addressing the industry conditions, including the low quality of raw materials.

“Suppose now PT SGN (Sinergi Gula Nusantara) is losing Rp 680 billion. Why? Because of imported sugar? No way. It’s because they can’t, the management can’t work,” he stated.

Soemitro assesses that improvements in management, regulations, and policies are key to boosting national production.

“What needs to be fixed are the policies and regulations,” said Soemitro.

Regarding the government’s plan to shift sugar raw material imports from the private sector to state-owned enterprises, Soemitro admits that his side is sceptical about the idea.

“Anyone can do it. Now, if the imports are handled by BUMNs, can their factories produce all super sugar? Not necessarily. It might just become a broker. They import raw sugar and then sell it. Who benefits? The BUMN. It may not return to the farmers,” he said.