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 of land. The development encompasses cultivation through to the processing industry, including the utilisation of cassava as a raw material for bioethanol. PTPN III President Director Denaldy Mulino Mauna stated that the integrated cassava development is being carried out to create added value whilst opening up economic opportunities for farmers and local business actors. “Through a downstreaming approach, the 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 business actors,” Denaldy said in a written statement in Jakarta on Wednesday. Denaldy noted that the development aligns with the government’s agenda to strengthen food and energy self-sufficiency and promote inclusive economic growth. PTPN III, through its subsidiary PTPN I, has signed a memorandum of understanding for business cooperation with 11 strategic partners comprising private companies, regional-owned enterprises, village-owned enterprises, cooperatives, and foundations. “The signing of this MoU with 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 phase, these 11 partners have planned cassava planting on an area of 7,313 hectares. The land will be developed through an integrated cultivation programme, while the remaining target area will be realised gradually in line with partnership expansion and land readiness. Denaldy explained that the development covers both upstream and downstream aspects. On the on-farm side, PTPN focuses 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 a processing industry, 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 stated. “Thus, cassava provides a dual contribution, namely to national food security and energy security, while simultaneously increasing farmers’ incomes.” According to Denaldy, the success of cassava development also depends on collaboration with local governments, village-owned enterprises, cooperatives, regional-owned enterprises, and the community. “This synergy is a concrete step to drive the downstreaming of the region’s leading commodity, create jobs, and encourage sustainable economic growth in Lampung, while strengthening national energy security,” Denaldy said. PTPN I Marketing and Asset Management Director Arif Budiman stated that the company will implement the programme in stages, starting from land preparation, strengthening partnerships, developing cultivation, to integrating with the downstream industry. “We are optimistic that this holding-led collaboration will have a real economic impact on the community, especially local farmers and business actors,” Arif said. Arif added that the development is also aimed at ensuring the economic benefits can be felt by the community at the grassroots level. PTPN I is committed to making this programme a model for modern and sustainable agribusiness. Going forward, the cassava ecosystem development in Lampung will be strengthened through research, technological innovation, human resource capacity building, and the expansion of the downstream industry to produce value-added products.