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View all search resultsDanantara to pour Rp 1.5t into buying farmers’ sugar
The government has tasked Danantara with financing a range of projects, from overhauling underperforming fish farms along Java’s northern coast to reviving long-stalled waste-to-energy (WtE) projects.
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Net worth: Sugar loading and unloading operations are seen on Feb. 16 at Sunda Kelapa Harbor, North Jakarta. (JP/Nurhayati)
S
tate asset fund Danantara is set to disburse Rp 1.5 trillion (US$92.25 million) to purchase unsold sugar stored in factory warehouses, according to the industry association.
Herman Fauzi, secretary of the Indonesian Sugarcane Farmers Association (APTRI) in the Assembagoes subdistrict of Situbondo, East Java, said Danantara had pledged the funds following talks with the Coordinating Food Minister and Coordinating Economy Minister.
“Last week, APTRI’s central board coordinated with the relevant ministries and reached a solution whereby Danantara will channel the funds through PT Sinergi Gula Nusantara [SGN] to make a temporary purchase of sugar from farmers,” he said on Saturday, as quoted by news agency Antara.
According to Herman, the Assembagoes sugar factory (PG Assembagoes) has stored thousands of tonnes of unsold sugar over the past month, as it had to reject bids from merchants offering prices below the reference price (HAP) of Rp 14,500 per kilogram.
“For four weeks now, merchants have been offering to buy the sugar at only Rp 14,350 per kg and even Rp 14,200 per kg, but the minimum sugar price is Rp 14,500,” Herman said.
He attributed the low prices for farmers’ sugar to an influx of refined sugar on the market, noting that refined sugar is intended for industrial use, particularly in the food and beverage (F&B) sector, and not for daily consumption.
“Refined sugar has a stark white color, is less sweet than consumption sugar and is [more affordable],” he added.
