PTPN Group to Develop Integrated Cassava Downstream Ecosystem in Lampung
PT Perkebunan Nusantara III (Persero), or PTPN, is developing cassava as a commodity in Lampung with a target of 10,000 hectares. The development covers cultivation through to processing industries, including the use of cassava as a raw material for bioethanol.
PTPN III President Director Denaldy Mulino Mauna said the integrated cassava development is being carried out to create added value while opening economic opportunities for farmers and local businesses.
“Through a downstreaming approach, PTPN Group is developing a cassava ecosystem from upstream to downstream to support national food and energy security while opening new economic opportunities for farmers and local businesses,” Denaldy said in a written statement in Jakarta on Wednesday (12/8/2026).
Denaldy said the development is in line with the government’s agenda to strengthen food and energy self-sufficiency and encourage inclusive economic growth. PTPN III, through its subsidiary PTPN I, has signed a memorandum of understanding (MoU) for joint business cooperation with 11 strategic partners comprising private companies, regional-owned enterprises (BUMD), village-owned enterprises (BUMDes), cooperatives, and foundations.
“The signing of the MoU with these 11 partners is the initial stage of the target to develop 10,000 hectares of cassava land in Lampung Province,” Denaldy continued.
In the initial stage, the 11 partners have planned cassava planting on 7,313 hectares of land. The land will be developed through an integrated cultivation programme, while the remaining target will be realised gradually as partnerships expand and land readiness improves.
Denaldy said the development covers both upstream and downstream sides. On the on-farm side, PTPN is focusing on land optimisation, the application of cultivation technology, and the development of high-yielding superior varieties.
Meanwhile, on the off-farm side, PTPN is developing processing industries, including the use of cassava as a raw material for bioethanol. Under this scheme, cassava is expected to provide added value for both food and energy needs.
“PTPN III is building a complete value chain, from upstream to downstream,” Denaldy said.
“In this way, cassava provides a dual contribution, namely to national food security and energy security, while increasing farmers’ incomes,” Denaldy added.
According to Denaldy, the success of cassava development also depends on collaboration with regional governments, BUMDes, cooperatives, BUMD, and the community. The involvement of various parties is considered important to build a value chain that involves communities around the development sites.
“This synergy is a concrete step to encourage the downstreaming of regional leading commodities, create jobs, and drive sustainable economic growth in Lampung, while strengthening national energy security,” Denaldy said.
PTPN I Marketing and Asset Management Director Arif Budiman said the company will implement the programme in stages, starting from land preparation, strengthening partnerships, developing cultivation, to integration with downstream industries.
“We are optimistic that the collaboration led by the holding company will have a real economic impact on the community, especially farmers and local businesses,” Arif said.
Arif said the development is also aimed at ensuring that economic benefits are felt by communities at the grassroots level. PTPN I is committed to making the programme a model of sustainable modern agribusiness.
Going forward, the development of the cassava ecosystem in Lampung will be strengthened through research, technological innovation, human resource capacity building, and the expansion of downstream industries to produce value-added products.