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Govt considers merging forestry and plantation SOEs
State-Owned Enterprises (SOEs) Minister Erick Thohir has put forward the idea in support of President Prabowo Subianto’s plan to achieve self-sufficiency in food production.
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Workers are seen on May 27, 2024, at a teak wood plantation in Randegan, Banjar, WestJava. (Antara/Adeng Bustomi)
S
tate-Owned Enterprises (SOEs) Minister Erick Thohir has proposed merging state-owned forestry company Perhutani with state-owned plantation firm PTPN to optimize land use in support of President Prabowo Subianto’s goal of self-sufficiency in food production.
“[With this merger], we will control 2.2 million hectares of land, allowing us to identify areas that can best support the food security program,” he said on Monday before House of Representatives Commission VI, which oversees SOEs.
“For instance, we are aiming for self-sufficiency in sugar, but the currently available land is not sufficient. The merger could allow us to remap [land resources accordingly].”
In 2014, the government consolidated several separate state-run forestry companies into a single entity under Perhutani. In addition to managing forest areas, the firm also has a subsidiary responsible for tourism, called PT Perhutani Alam Wisata Risorsis (Econique).
Read also: IDX hopes three SOEs to go public in 2025
Meanwhile, Indonesia consolidated thirteen plantation companies under Perkebunan Nusantara (PTPN) III last year, which now includes several subsidiaries: PalmCo focuses on crude palm oil commodities, SugarCo deals with the national sugar industry and SupportingCo manages other commodities.
PTPN III announced last year that PalmCo would raise between Rp 6 trillion (US$389.9 million) and Rp 8 trillion through an initial public offering (IPO). The proceeds are to be used for PalmCo’s business development, in particular to increase the amount of land and production capacity.
