Indonesian Political, Business & Finance News

SGN conducts first planting for sugarcane area expansion to bolster sugar production

| Source: ANTARA_ID Translated from Indonesian | Agriculture
SGN conducts first planting for sugarcane area expansion to bolster sugar production
Image: ANTARA_ID

Through this area expansion, we aim to build an increasingly robust sugar ecosystem, ranging from the land and farmers to processing in sugar mills.

Surabaya, East Java (ANTARA) - PT Sinergi Gula Nusantara (SGN) has conducted the first sugarcane planting as part of the Sugarcane Area Expansion Programme in Bone Regency, South Sulawesi. This is part of an effort to strengthen the raw material base and national sugar production, particularly in the Eastern Indonesia region.

“The potential in the Eastern Indonesia region is very large for sugarcane development. Through this area expansion, we want to build an increasingly strong sugar ecosystem, starting from the land and farmers to processing in sugar mills,” said the President Director of PT SGN, Mahmudi, in a statement received in Surabaya, East Java, on Tuesday.

Mahmudi stated that the development of sugarcane areas in Eastern Indonesia is supported by several factors, including land availability, support from local governments, and the presence of sugar mills that can support the processing of farmers’ produce.

According to him, the expansion of planting areas is not only aimed at increasing the total sugarcane acreage but also at improving productivity through farmer assistance and the implementation of better cultivation practices.

“What we are building is not just land expansion, but also the increase of productivity and farmer welfare. Synergy with local governments is key to ensuring this programme delivers a real impact,” he said.

Bone is considered to have prospects for development as one of the sugarcane growth areas in Eastern Indonesia, supported by the presence of two SGN-owned sugar mills, allowing it to become part of the production and processing ecosystem.

The sugarcane area expansion programme in Bone is part of SGN’s efforts to strengthen the availability of raw materials for the sugar industry outside the production centres that have traditionally developed on Java.

Strengthening the production base in Eastern Indonesia is expected to drive increased sugarcane productivity while expanding farmer involvement in the national sugar industry supply chain.

This step is also part of the effort to strengthen the foundation towards national sugar self-sufficiency through the addition of planting areas, increased productivity, and the strengthening of partnerships between farmers, local governments, and the sugar processing industry.

The Regent of Bone, Andi Asman Sulaiman, welcomed the sugarcane area expansion, noting that it could create new economic opportunities for the community and strengthen the regional agricultural sector.

“Bone has great potential for sugarcane development, especially since there are two sugar mills owned by PT SGN here. This presents an opportunity to develop the sugarcane area while creating economic opportunities for the community and increasing farmer welfare,” said Andi.

He ensured that the Bone Regency Government is ready to strengthen coordination with SGN, particularly in supporting the development of planting areas and partnerships with farmers.

“We hope this area expansion can be sustainable. The local government is ready to synergise so that the sugarcane potential in Bone can be developed optimally and provide benefits to the community,” he added.

For information, the realisation of sugarcane milling in the first semester of 2026 nationally reached 3,129,398 tonnes, an increase of approximately 20 per cent compared to the first semester of 2025, which was 2,601,130.55 tonnes.

Sugar production in the first semester of 2026 reached 178,763 tonnes, an increase of approximately 26 per cent compared to the same period in the previous year, which was 141,568.91 tonnes.

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