PTPN III Requires Rp140 Trillion in Capital Expenditure Over Five Years

PT Perkebunan Nusantara III (Persero) will expand its business into the food and energy sectors to support the government’s food self-sufficiency programme. Acting President Director of PTPN III Iswahyudi stated that realising this plan requires capital of Rp140 trillion. The capital expenditure for the programme, to be executed over the next five years, will be used for extensification and the construction of new downstream factories. “We need capex of approximately Rp140 trillion,” he said during a hearing with Commission VI of the Indonesian House of Representatives in Jakarta on Monday. Iswahyudi revealed that the company is currently applying to the government for an expansion of its National Strategic Project (PSN) status. This status would facilitate regulatory coordination, governance, and long-term financing schemes, including the potential submission for State Capital Participation (PMN). According to the company’s work plan presentation, the investment will be used to add 270,000 hectares of oil palm land and 500,000 hectares of sugarcane land by 2030. PTPN III is also expanding into new commodities with planting targets of 104,000 hectares of cassava, 200,000 hectares of soybeans, 24,000 hectares of garlic, and 4,200 hectares of maize. In the downstream sector, the funds will be used to build three new sugar factories and green energy infrastructure. The company plans to construct 10 new bioethanol plants processing sugarcane, cassava, and maize, alongside developing biodiesel and compressed biogas (CBG) facilities.