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Sugar Cane Cultivation Through Empowerment of Small and Medium Enterprises Farmers

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The sugarcane cultivation partnership program is able to provide added value for farmer partners

REPUBLIKA.CO.ID, JAKARTA — PT Rajawali Nusantara Indonesia (Persero) or RNI is optimizing the MSME partnership program for sugarcane farmers to support the fulfillment of the national sugar industry production through sugarcane cultivation in a number of sugar mill operational areas managed by the RNI Group.

RNI President Director Arief Prasetyo Adi said one of them was the sugarcane cultivation partnership through the empowerment of MSME farmers in synergy with the Village-Owned Enterprises (BUMDes) Pandawa Village, Pilangsari, Majalengka, West Java.

“This partnership, apart from being able to improve the local economy, also plays a role in the food supply chain for sugar commodities,” Arief said in a written statement in Jakarta, Thursday (12/8).

Arief conveyed that the sugarcane cultivation partnership program is a program that aims to not only improve the welfare of the people of Pengangga Village, but also to provide added value to partner farmers, to fulfill milled raw materials for sugar mills and to create new business fields to support sugarcane plantations.

“In addition to increasing the productivity of sugar cane plantations and the profitability of farmer partners, this program also supports the fulfillment of national sugar production,” said Arief.

Through the partnership program, Arief continued, sugarcane farmers as RNI partners are directly involved by becoming members of BUMDes as well as implementers of sugarcane cultivation, while BUMDes provides production facilities, plant processing and maintenance services as well as loading and transporting.

Downstream, said Arief, RNI Group through PT Rajawali II, which manages the Jati Tujuh Sugar Factory, also provides assistance through fostering cultivation systems for farmers as well as being a sugar offtaker for smallholder sugar cane farmers.

Arief said, this partnership continues to increase every year with farmer partners for sugarcane cultivation, starting from the 2018/2019 Planting Season (MT) as many as 1,309 Farmers, MT 2019/2020 there are 1,826 farmers, MT 2020/2021 as many as 1,986 farmers until MT 2021/2022 strived to increase to as many as 2,752 Sugarcane Farmers. “From farmers’ interest in sugarcane cultivation, we also expand sugarcane plantations every year,” said Arief.

As a result of this sugarcane farmer partnership, Arief continued, the farmer partners produced a sugar cane purchasing system from several villages in the Majalengka and Indramayu areas of up to Rp 100 billion per year from the sugar cane offtake carried out by the RNI Group and then used as raw material for processing milled sugar at the Sugar Factory. Jati Tujuh which is managed by PT Rajawali II RNI Group.

Arief conveyed that RNI as a food cluster SOE has five sugar factories (PG), including PG Krebet Baru, PG Redjo Agung, PG Candi Baru, PG Tersana Baru, PG Jati Tujuh which produce more than 283 thousand tons a year.

“RNI in the near future in 2021 will also become a holding company for the food industry along with eight other food SOEs in the agriculture, livestock, fisheries, trade and logistics sectors,” said Arief.

The Ministry of SOEs stated that the establishment of a BUMN holding is considered to create added value, efficiency, supply chain strengthening, and business model innovation. SOE Minister Erick

Thohir said that the existence of holding companies kept SOEs competitive during and after the Covid-19 pandemic. “The establishment of BUMN holdings is still being carried out, where the formation of this holding is to create added value for efficiency and strengthen supply chains, innovate business models to remain competitive both during Covid-19 and post-covid-19,” said Erick.

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