economy

PTPN Group Teams Up With Bank Mandiri To Promote Flexible Financing Options For Sugarcane Farmers

Perkebunan Nusantara, through its subsidiary PT Sinergi Gula Nusantara (SGN), has teamed up with PT Bank Mandiri (Persero) Tbk in a strategic partnership, marked by a cooperation agreement signed in Surabaya on Friday (09/08/2024). This collaboration aims to provide integrated financial solutions to support SGN's ecosystem, especially for sugarcane farmers who are key partners. Bank Mandiri will offer a special financing facility called Kredit Usaha Rakyat/Kredit Usaha Mikro (KUR/KUM) tailored for sugarcane farmers, allowing them to manage their cash flow more flexibly with a harvest payment scheme. "This way, payment obligations can be adjusted to the harvest time, which often poses challenges in agricultural management," said M Abdul Ghani, the CEO of Holding Perkebunan Nusantara PTPN III (Persero). Ghani emphasized that this partnership reflects PTPN Group's commitment to improving the welfare of sugarcane farmers in Indonesia by providing broader access to financial facilities that support their growth and sustainability. The partnership is expected to not only assist sugarcane farmers in the short term but also contribute to the sustainability of the national sugar industry. "With easier and more flexible financing access, sugarcane farmers are expected to boost their productivity and the quality of their harvests, thereby strengthening national food security and supporting future self-sufficiency in sugar," Ghani added. Meanwhile, Mahmudi, the CEO of SGN, pointed out that this collaboration with Bank Mandiri is unique, as it not only covers operational costs for farmers, such as land preparation, fertilizers, and transportation, but also includes funding for purchasing sugarcane seeds.

What's cool about this scheme is that it not only supports sugarcane farmers with their operational costs, fertilizers, and TMA, but it also covers the cost of sugarcane seeds, which is a first for the partnership with Bank Mandiri, Mahmudi explained. For fertilizers and seeds, they’re teaming up with the MAKMUR program from PT Petrokimia to provide high-quality fertilizers and with seed institutions like the Indonesian Sugarcane Research Center (P3GI). "The fertilizers and seeds will be provided in kind, making it easier for farmer partners to access quality sugarcane supplies," he added. Budi Purwanto, the Executive Vice President of Corporate Banking VI at Bank Mandiri, shared that this initiative is part of a larger strategy to expand the agricultural ecosystem through digitalization and innovative financial services. "We see a huge potential in the agricultural sector to boost national economic growth. By leveraging digitalization and strategic partnerships like the one with SGN, we aim to create an inclusive and sustainable ecosystem where farmers can easily access financing tailored to their needs," Budi stated.

Tag: Bank Mandiri PTPN Group SGN