economy

PTPN Group Implements Community Empowerment Strategy Through Sugarcane Farmer Partnerships

The President Director of Holding Perkebunan Nusantara PTPN III (Persero), Mohammad Abdul Ghani, emphasized PTPN Group's commitment to supporting the programs of the Ministry of State-Owned Enterprises and President Prabowo Subianto aimed at enhancing community empowerment. Ghani made this statement during a visit with the Coordinating Minister for Community Empowerment, Muhaimin Iskandar, to review the UKM and Empowerment Program in Mojokerto on Thursday (January 16, 2024).

During this visit, Minister Muhaimin Iskandar, along with Deputy Minister of State-Owned Enterprises Kartika Wirjoatmodjo and the Acting Mayor and Regent of Mojokerto, explored several initiatives such as the PNM Mekaar Empowerment Group, the People's Sugarcane Plantation at PT Sinergi Gula Nusantara, and Economic Empowerment through BRILian Villages. Ghani noted that each state-owned enterprise has programs that engage the community as part of their commitment to improving community welfare. "For instance, PTPN Group has a plasma partnership with farmers based on mutually beneficial cooperation. We cannot do this alone; collaboration is essential," he stated.

In agreement, Mahmudi, the President Director of PT Sinergi Gula Nusantara (SGN), added that the success of community empowerment programs relies on the commitment and synergy among all involved parties. "The commitment and collaboration of various stakeholders, including ministries, agencies, institutions, and the government, enable community-involved empowerment programs to run effectively," he explained.

Coordinating Minister for Community Empowerment, Muhaimin Iskandar, praised SGN for their commitment to supporting sugar self-sufficiency through the empowerment of sugarcane farmers. According to Muhaimin, SGN's innovative steps as part of Holding Perkebunan Nusantara, including the farmer development platform, have significantly contributed to strengthening the national sugar sector. PT SGN has made significant contributions through innovation and real work. Their sugarcane incubation program not only speeds up the regeneration of farmers but also creates opportunities for young people to get involved actively, he said.

Muhaimin expressed optimism that Indonesia can overcome the challenges of agricultural self-sufficiency to achieve food, energy, and economic independence, thanks to support from all parties. "With a spirit of collaboration, synergy, and community economic empowerment, we will accelerate development," he hoped.

Sugarcane Farmer Partnerships as a Model for Community Empowerment

The partnership model between sugar factories and sugarcane farmers through a profit-sharing system is seen as a more effective form of cooperation and community empowerment compared to other transactional partnerships. In this partnership, partner sugarcane farmers receive guidance from sugar factories on sugarcane cultivation, access to banking and financial institutions, and various other facilities aimed at increasing farmers' sugar productivity. "The sugarcane farmer partnership model is the best example of mutually beneficial cooperation. Various access and networks are provided to sugarcane farmers," Mahmudi added.

Access to capital is one of the main challenges affecting the sustainability of sugarcane businesses. Therefore, PTPN, through SGN, collaborates with the Coordinating Ministry for Economic Affairs to utilize the Special Cluster Microcredit Program (KUR) as a concrete step to strengthen the sugarcane ecosystem. "We have conducted joint socialization with the Coordinating Ministry for Economic Affairs to utilize the Special Cluster KUR program by sugarcane farmers, where there is no limit on the ceiling. This is to meet the capital needs of farmers," Mahmudi explained.

Tag: PTPN Group