The Indonesian government, through the Ministry of State-Owned Enterprises (BUMN) continues to strive to maintain food and energy security amidst the threat of global uncertainty. One concrete step is to transform PT Perkebunan Nusantara (PTPN). To increase sugar production and downstreaming, the Ministry of SOEs made a breakthrough by forming a Sugar Co. SOE Minister Erick Thohir assessed that this step was in line with the priorities of President Joko Widodo (Jokowi) who always emphasized ecosystem development and reduced dependence on world supply chains for the food and energy sectors. "Sugar Co's focus is not only on meeting the national sugar needs, improving the welfare of sugarcane farmers, maintaining the stability of farmers' sugar prices, but also being a producer of bioethanol which is a derivative product of sugarcane as a mixture of fuel oil," said Minister Erick at the kick-off event for Revitalization. National Sugar Industry for Food and Energy Security at Temugiring Sugarcane Plantation, Mojokerto, East Java, Monday (10/10/2022). In addition to establishing a Sugar Co, PTPN also took strategic steps by establishing a Palm Co to increase production and downstreaming of palm oil. As for the development of other commodity products, they are grouped under the umbrella of Supporting Co. With the formation of Sugar Co, this business umbrella has become a giant sugar producer in the country that has succeeded in integrating 7 PTPN companies and 2 subsidiary companies. But more than that, Sugar Co will also become the backbone of food security and one of the drivers of national energy security with bioethanol products. "Today, let's try to kick off, we hope that the revitalization of this industry can meet the national sugar demand for the medium and long term," he continued.

President Jokowi, continued Erick, also wants to ensure the welfare of farmers must be part of this revitalization. "We want to ensure that farmers' incomes, which are IDR 13.1 million per hectare, are pushed to IDR 32.1 million per hectare. But milk ojo is gradual, because fertilizers, seeds and off-takers are also needed," he said. As is known, Bioethanol is one of the alternative fuels derived from plants that have gone through the fermentation process, one of the plants that can be used is sugar cane. Based on the results of a study in Brazil, 1 ton of sugar cane can produce the equivalent of 1.2 barrels of crude oil. "Along with the increase in national sugarcane production, Sugar Co itself has the potential to produce 1.2 million kilo liters of bioethanol by 2030," said Erick. Seeing the huge potential, Pertamina will also start a pilot project at the Gempolkrep Sugar Factory (PG) to produce Bioethanol from Sugar Co. "By mixing bioethanol into existing Pertamina fuel, Pertamina fuel will be more environmentally friendly," said Erick Thohir. Furthermore, Erick said that the revitalization of the sugar industry carried out by SOEs could expand product downstreaming that could absorb more jobs. Erick said this sector has derivatives in the form of bagasse which can support the pharmaceutical industry. "This bagasse is one of the halal pharmaceutical raw materials. Thus, pharmaceutical products will be more affordable because they do not import raw materials. This effort needs the support of all parties, we must create food and energy sovereignty together," Erick added.

Source: https://www.liputan6.com/bisnis/read/5093364/erick-thohir-bentuk-sugar-co-jaga-ketahanan-pangan-ri