Indonesian Political, Business & Finance News

PT Garam Strengthens Partnerships for the Welfare of Madura Salt Farmers

| Source: CNBC Translated from Indonesian | Business
PT Garam Strengthens Partnerships for the Welfare of Madura Salt Farmers
Image: CNBC

Jakarta, CNBC Indonesia - PT Garam held a strategic meeting with Achsanul Qosasi, H. Her (BM Group), and the support team in Surabaya. This meeting is part of PT Garam’s ongoing efforts to strengthen its role as a driver of the national salt industry through exploring partnerships with the private sector.

The collaboration is designed under a partnership scheme involving PT Garam as the state representative, business actors as business operators, and salt farmers as the main production pillar. Through this approach, it is hoped that a mutually reinforcing and sustainable business ecosystem will be created.

PT Garam’s President Director, Abraham Mose, emphasised that this step is part of the company’s transformation in creating added value for the industry while delivering direct impacts for society.

“PT Garam is present not only as a business entity, but as an extension of the state’s hand to ensure that people’s salt is well absorbed, has added value, and prices at the farmer level remain stable. This partnership is a concrete step to improve the welfare of salt farmers, especially in Madura,” he stated, quoted on Wednesday (6/5/2026).

In the scheme being developed, partners will absorb salt directly from farmers and then process it through processing facilities, including PT Garam’s factory in Camplong. This process enables improvements in the quality and selling value of salt, which has the potential to achieve higher prices compared to raw salt.

PT Garam itself acts as a facilitator by providing assets and systems, while partners handle the operational aspects of absorption and processing. This scheme also opens opportunities for implementing a toll manufacturing model or optimal utilisation of assets.

In the future, this collaboration will be formalised through the company’s official mechanisms and is expected to be quickly realised as a pilot project in efforts to sustainably stabilise people’s salt prices.

“Through this initiative, PT Garam reaffirms its commitment to building a stronger, more competitive national salt industry that prioritises the welfare of farmers,” Abraham concluded.

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