Supporting SDGs and ESG by Empowering Palm Farmers, Pertamina's Fostered Sugar Production Increases 3 Times

Jakarta, May 18, 2021 - Micro and Small Enterprises (MSEs) greatly help the Indonesian economy. This sector has proven to be a strong foundation for the country's economy from various crises. Through the Partnership Program, PT Pertamina (Persero) is here to strengthen MSEs to be more adaptive. Therefore, they can become an upgraded MSEs.

It is what inspired Jo Santosa, one of Pertamina's partners. He decided to build the Areniss brand through CV Sentosa Andalan Wurmb. Areniss' core business is the production of palm sugar or kawung. The man more familiarly called Osa said that his kawung sugar development business began in 2010.

"Initially, it was just to fulfill the request of my business partner in Surabaya. At that time, he needed a stock of kawung sugar as much as 10 tons. Because at that time the kawung trade system was inadequate, and the quality of the product was not good, fulfilling this demand was quite a challenge. I am grateful that I can fulfill it," he said.

Osa said the sugar was originally packed only with kawung leaves. However, it is slowly entering markets and supermarkets after being packaged more attractively at affordable prices, in the form of solid or printed sugar. "This is what makes Areniss a premium quality product at an affordable price," he added.

After becoming Pertamina's partners in 2020, several developments are increasingly visible in his business. It starts from the increase in production capacity up to 3 times, from 1 ton to 3 tonnes per month. The number of workers also increased, initially five people, now it has become ten people. Osa also fostered ten groups that accommodate dozens of palm farmers.

"Areniss wants to be the first company in West Java and Indonesia that collaborates synergistically with farmers. Therefore, they can explore the potential benefits of Kawung trees, from upstream to downstream. Thus, it will have positive economic and ecological impacts based on local wisdom and local culture," he added.

Osa has expanded its marketing reach throughout Indonesia. Initially, he only sold through outlets located at Jalan Patriot Selatan No. 30 Arrowroot. Now, in almost all social media and marketplaces, Areniss products can be found. This effort helped increase the turnover, which was previously around IDR 50 million, now it can reach IDR 70 million/month.

Acting Senior Vice President of Corporate Communications & Investor Relations of Pertamina, Fajriyah Usman, added that Pertamina would continue to support businesses like Santosa's. "Palm sugar products have become a commodity in several regions in Indonesia. Pertamina will continue the support these products to penetrate the export market to foreign countries," she said.

According to Fajriyah, through the Partnership Program, Pertamina wants to present the energy that drives the economy--energy that becomes fuel and energy that generates sustainable growth.

Pertamina always supports the SDGs (Sustainable Development Goals) achievement through implementing ESG (Environmental, Social, and Governance) based programs in all of its operational areas. It is part of the environmental and social responsibility to realize economic benefits in the community.**