Indonesia taps village cooperatives to boost sugar industry growth

Jakarta (ANTARA) - The Ministry of Cooperatives envisions business entities under the Red and White Village Cooperatives (KDMP) program facilitating the absorption and distribution of sugar from local sugarcane farmers to strengthen Indonesia’s sugar industry.

“Cooperatives can contribute to people’s livelihoods across various sectors, especially agriculture, crop plants, and plantations,” Cooperatives Minister Ferry Juliantono said in a press statement cited in Jakarta on Wednesday.

He made the remarks in Semarang, Central Java, on Tuesday (July 14) while explaining that the approach forms part of the government’s efforts to empower village cooperatives as catalysts for national food self-sufficiency, including in sugar.

During a dialogue with farmers, Juliantono argued that boosting national sugar production could improve farmers’ welfare, but it requires consolidation among sugarcane growers and stronger cooperative management.

The minister explained that sugarcane yields gathered by cooperatives would be absorbed by PT PG Rajawali I, a subsidiary of the state-run food company ID Food, to ensure favorable market prices for farmers.

He added that the yields would then be marketed through KDMP grocery outlets nationwide after being processed into table sugar.

“We will strengthen synergy and collaboration with the Ministry of Agriculture to find solutions to agricultural activities, food crops, horticulture, and other fields,” Juliantono emphasized.

He further noted that the ministry intends to mobilize its Revolving Fund Management Institute (LPDB) to help cooperatives engaged in sugarcane farming to grow through viable financing schemes, incubation, mentoring, and other activities aimed at boosting productivity and professionalism.

On the same occasion, Agriculture Deputy Minister Sudaryono highlighted that Indonesia had achieved self-sufficiency in table sugar, though it still relies on imports of refined sugar for industrial needs.

He stressed the government’s commitment to expanding self-sufficiency to all sugar varieties, including sugar-rich crops needed as feedstock for producing bioethanol to support E10 and E20 fuel blends.

Sudaryono noted that the commitment is driven by President Prabowo Subianto’s directives to ramp up agricultural productivity, boost farmers’ welfare, and strengthen the role of cooperatives in rural economies.

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Translator: Shofi Ayudiana, Tegar Nurfitra

Editor: Azis Kurmala

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