WHAT IS SUGAR?

The development of sugar cane plantations during the colonial period was the starting point for the emergence of the sugar industry in Indonesia. Sugar cane cultivation on the island of Java existed before the inauguration of Culturestetsel in 1830 by the Governor General Johannes van den Bosch. Cultivation of this plant was previously only practiced on plantations owned by Chinese and Dutch people around Batavia and Pasuruan, East Java. It was not until 1860 that many sugar factories began to emerge on the island of Java, where these factories depended on the supply of sugar cane from the Pasuruan, Semarang and Tegal regions. The large number of sugar cane plantations support sugar factories for being able to produced more than 130,000 tons of sugar per year.

               Indonesia has been a well-known as sugar exporter since colonial times, but starting in 2016 Indonesia has turned into the largest sugar importer in the world. Indonesia spent USD 2.1 billion to import sugar in 2016. Even though in 2019 the import value decreased to USD 1.4 billion, but the volume has consistently shown an increase.

               Now, there are 61 sugar cane-based sugar factories (PG) operating in Indonesia. And 40 of them are managed by BUMN Plantation through PTPN II, PTPN VII, PTPN IX, PTPN X, PTPN XI, PTPN XII and PT Rajawali Nusantara Indonesia. Sugar factories owned by PT Perkebunan Nasional (Persero) produce superior sugar products including White Crystal Sugar (GKP), molasses (Mollase), Nutmeg syrup and 1 kg packing sugar products which are famous in their respective regions (Sugar 9, Walini Sugar, Golatta Sugar).

               PTPN Group plays a role in maintaining the availability of retail reasonable price sugar throughout the year, as well as maintaining national food security towards sugar self-sufficiency. The product of 1 kg packing retail is a manifestation of PTPN Group's seriousness as a sustainable sugar business in supporting the fulfillment of food demand and price stability in society, with the highest retail price (HET) of Rp. 12,500 rupiah per kg. PTPN is also targeting in the next 5 years to expand its sugar cane cultivation area twice. By expanding the land for the sugar industry, it can help the community to plant and manage sugar cane seeds and provide credit to farmers. This step is deemed necessary because by strengthening the sugar industry it can reduce the import dependence and control the consumer level.