The synergy between the government and the private sector in improving the governance of the sugar industry in Indonesia is considered to be able to accelerate the target of self-sufficiency in sugar consumption by 2028. Private experience in bringing science, technology, innovation, and knowledge transfer is very much needed by the government in helping to create food self-sufficiency, as well as opening up new jobs, as well as improving the standard of living of farmers. Economist Eugenia Mardanugraha, assessed that the government through the Ministry of State-Owned Enterprises (BUMN) has laid the right footing to increase national sugar production by forming PT Sinergi Gula Nusantara or Sugar Co, which is a special sugar company combined from several business units of the PTPN Group. "I think the initial step by forming a special sugar company from the existing PTPN Group business units is good. In the future, it's just a matter of how to calculate the business and then offer it to investors," explained Eugenia, Monday (11/14/2022). Just like the efforts to make major improvements to SOEs, Eugenia sees that improvements to the PTPN Group are also being carried out. The establishment of the Sugar Co sugar holding is an important first step. All sugar business units in PTPN Group will be separated from their parent company (spin off) and then consolidated into Sugar Co. Consolidation is carried out so that the company focuses on managing its business properly. Furthermore, Eugenia said, Sugar Co will be attracted by investors or the private sector after complete data and accurate business plans. That way, the capital needs for land expansion, sugarcane land management, revitalization of new factories with advanced technology can be met. “If Sugar Co succeeds in increasing sugar production, it will not only achieve food self-sufficiency, but also be able to increase the production of industrial raw materials and energy. Now the important thing is to focus first on improving management and business strategy,” he explained.
In the future, the sugar industry will not only create food self-sufficiency, but will also have a positive impact on the economy at large. Processed sugarcane can produce ethanol, which is an environmentally friendly fuel. In this way, the transition to new renewable energy (EBT) launched by the government can be realized properly. Even in the long term it can reduce dependence on imported fuel. "The effort of the Minister of SOEs to form this holding is good and according to the initial promise. I think it would be better and more efficient to cooperate with the private sector. Automatically if the company is efficient, targets such as self-sufficiency and product diversification into ethanol can be achieved. If it's not managed professionally, then it's all bullshit,” explained Eugenia. He continued, Indonesia could restore the glory days of national sugar as in the era of the 1930s-1940s when Indonesia at that time managed to become one of the largest sugar exporters in the world. However, to achieve this requires commitment and seriousness of all parties. BUMN Minister Erick Thohir formed Sugar Co to maintain food and energy security amid the threat of global uncertainty. Minister Erick at the inauguration ceremony for the Revitalization of the National Sugar Industry for Food and Energy Security at the Temugiring Sugar Cane Plantation, Gedeg District, Mojokerto Regency, Monday evening, said this effort was also one of the strategic steps for the Ministry of BUMN to transform PT Perkebunan Nusantara (PTPN). To increase production and downstream sugar, the Ministry of BUMN made a breakthrough by forming a sugarcane plantation company under one entity called Sugar Co or PT Sinergi Gula Nusantara (SGN). "Sugar Co's focus is not only to meet national sugar needs, improve the welfare of sugar cane farmers, maintain the stability of farmers' sugar prices, but also to become a producer of bioethanol which is a product derived from sugarcane as a mixture of fuel oil," he said as quoted by Antara, Thursday (13/13/2019). 10/2022). He considered that this step was in line with President Joko Widodo's priorities, which always emphasized building ecosystems and reducing dependence on world supply chains for the food and energy sectors. PTPN also took a strategic step by forming Palm Co or as a PTPN spin-off company to downstream palm oil. For the development of other commodity products, they are grouped under the umbrella Supporting Co. With the formation of Sugar Co, he said, this umbrella business has become a giant sugar producer in the country that has successfully integrated seven PTPN companies and two subsidiary companies. But more than that, Sugar Co will also be 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 the sugar industry for food and energy security in Mojokerto Regency can meet the national demand for sugar in the medium and long term," he said.
President Jokowi, continued Erick, also wants to ensure the welfare of farmers must be part of this revitalization. "We want to ensure that the farmers' income, which is IDR 13.1 million per hectare, is pushed to IDR 32.1 million per hectare. But don't rush it, it's gradual because fertilizer, seeds and off-takers are also needed," he said. Bioethanol is one of the alternative fuels derived from plants that have gone through a fermentation process, one of the plants that can be used is sugarcane. Based on the results of a study in Brazil, one 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 in 2030," he said. Seeing the huge potential, Pertamina will also start a pilot project at the Gempolkrep Sugar Factory to produce Bioethanol from Sugar Co. "By mixing bioethanol into existing Pertamina fuel, Pertamina fuel will be more environmentally friendly," he said. Erick said that the revitalization of the sugar industry by SOEs could expand product downstreaming that could absorb more jobs. He 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," he said.
