PTPN III Prepares Strategic Programmes to Support 2026 Performance Targets

PT Perkebunan Nusantara III (PTPN III) is preparing a number of strategic programmes with its shareholders to strengthen the company’s performance and target achievements by the end of 2026, whilst supporting the government’s agenda to boost the national economy. Acting President Director of PTPN III, Iswahyudi, stated that the first work programme relates to the consolidation of the sugar business, where all state-owned sugar mills have now officially been merged into PT Sinergi Gula Nusantara (SGN) for more efficient management through a single entity. ‘Six sugar mills belonging to RNI, or three sugar companies managing RNI’s mills, have officially joined our subsidiary that manages sugar, in this case PT SGN, so that currently and going forward, all management of the state-owned sugar business will be under one entity, namely PT SGN,’ Iswahyudi said during a Hearing Meeting of PTPN III and its Subholdings with Commission VI of the Indonesian House of Representatives at the Parliament Complex in Senayan, Jakarta, on Monday. Secondly, PTPN will conduct a shareholder settlement to improve the capital structure. Iswahyudi explained that all palm oil plantation assets and management, totalling 570,000 hectares, will be centralised under PTPN IV (PalmCo), whilst all sugarcane land belonging to PTPN 1 will be fully managed by PT SGN. This step is taken to ensure the management of each commodity is more focused and integrated. The third programme involves the company carrying out a corporate restructuring by simplifying the number of subsidiaries from 69 entities to approximately 19 entities by the end of 2026. The restructuring will be conducted through mergers, simplification, and the liquidation of several companies. ‘So there are several companies that we will merge, several companies that we will roll up, and several companies that we will liquidate. We are targeting that by December 2026, from 69 entities within the group, God willing, it will become 19 entities,’ Iswahyudi said. PTPN will also strengthen operational excellence this year to increase the productivity of all commodities. The company is still prioritising the improvement of its rubber, tea, and coffee businesses, particularly rubber and tea, whose performance remains suboptimal. Fifthly, PTPN will carry out asset disposition, namely releasing assets needed to support national strategic projects, such as toll road construction, electricity infrastructure, and other government projects. Iswahyudi added that PTPN will also accelerate downstream processing and extensification, developing value-added products from plantation commodities such as palm oil, sugarcane, coconut, and nutmeg, whilst expanding business development to support government programmes.