Supporting the Strengthening of the National Sugar Stock, Pertamina Distributes IDR 21.5 Billion Capital for Sugar Cane Farmers in East Java

Jakarta, February 3, 2021 - PT Pertamina (Persero), through the Partnership Program, continues to strengthen the synergy that has been established between SOEs. This time the collaboration was established with PT Perkebunan Nusantara (PTPN) XI, which has shown rapid progress. Until the end of December 2020, Pertamina had distributed capital of IDR 21.5 billion to 263 sugar cane farmer groups under the auspices of PTPN XI.

Senior Vice President of Corporate Communications & Investor Relations of Pertamina, Agus Suprijanto, said the synergy was carried out to strengthen the supply of sugar cane to support national sugar supply as a commitment to maintaining national food security.

The Ministry of Agriculture (Kementan) estimates that sugar production in 2021 will increase to 2.24 million tons, assuming a 5% increase from production in 2020. "Pertamina will take part in supporting the achievement of this success by helping sugarcane farmers," said Agus.

This synergy with PTPN XI is inseparable from the extraordinary potential of East Java as the largest sugarcane producer in Indonesia. Hundreds of sugar cane farmers who receive capital are spread in several regions in East Java. Among them are Situbondo, Bondowoso, Jember, Ngawi, Pasuruan, and Madiun districts. "The area of land for the sugar cane farm that these foster partners are processing is more than 1,501 hectares," he said.

Agus added, there are quite a lot of benefits felt by sugarcane farmers from the distribution of this SOE synergy fund. For example, the need for funds for cultivating, fertilizers, maintenance, and costs of cutting and loading are met with low interest and on time. Pertamina also helps sugarcane cultivation and conserves sugarcane farmers by providing soft loans.

"This is in line with Pertamina's commitment to implement ESG in the social sector by easing the burden on sugarcane farmers," he added. Apart from the farmer's side, this capital loan can also improve the quality of sugarcane both in terms of raw materials and finished products later.

The distribution of Partnership Program funds to the Sugar Cane Farmers (Petani Tebu Rakyat) for the 2019/2020 planting period has been completed. All sugarcane planting stages, including crust work, fertilizer I, fertilizer II, bumbun I, bumbun II, Gulud, klentek I, klentek II, cutting, loading, and transport (TMA) have been done 100 percent. "Everything has been distributed and has a positive impact on sugarcane farmers," he said.

According to Agus, as one of the strategic SOEs in Indonesia, Pertamina will continue to synergize with various parties. Especially concerning the welfare of the fostered partners and the people around them, both their families and workers. "This is a manifestation of the implementation of SDGs point 8 where we can help provide employment and support national economic growth," Agus concluded.**