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SGN Teams Up With Mandiri To Support Farmers And Boost The Sugarcane Industry

PT Sinergi Gula Nusantara (SGN), a subsidiary of PTPN III (Persero) in the sugar industry, has teamed up with Bank Mandiri to support sugarcane farmers' capital needs. The signing took place last Friday (August 13) in Surabaya. "For the 2024/2025 milling year, sugarcane farmers need around Rp1.3 trillion, and Bank Mandiri is one of the ways to meet that," said Hariyanto, SGN's Finance Director. This partnership aims to provide farmers with up to Rp500 billion in funding. Mahmudi, SGN's CEO, noted that this collaboration with Bank Mandiri is unique because it not only covers operational costs like land preparation, fertilizer, and transportation but also includes funding for purchasing sugarcane seeds. "What makes this scheme special is that it supports farmers with costs for land preparation, fertilizer, and TMA activities, plus it also covers seed costs, which is a first with Bank Mandiri," Mahmudi added. For fertilizer and sugarcane seeds, they are collaborating with PT Petrokimia's MAKMUR program to ensure quality supplies, along with credible seed institutions like the Indonesian Sugarcane Research Center (P3GI) under the Nusantara Research Institute (RPN). Mahmudi pointed out that one way to boost productivity is through better variety management, as the current situation is not ideal—only 10% early maturing, 30% mid-maturing, and 60% late maturing. Ideally, it should be 30% early, 40% mid, and 30% late, which would positively impact sugar yield and productivity. "The current sugarcane varieties aren't standardized, so we need to start organizing them now, involving the entire sugar ecosystem, including banks and sugarcane farmers, especially since we're focusing on strengthening smallholder sugarcane production," he explained.

Meanwhile, M. Abdul Ghani, the CEO of PTPN III (Persero) Holding Perkebunan Nusantara, mentioned that this collaboration is part of PTPN Group's commitment to improving the welfare of sugarcane farmers in Indonesia. They aim to provide broader access to financial facilities that support the growth and sustainability of their businesses. "With easier and more flexible financing options, sugarcane farmers are expected to boost their productivity and the quality of their harvests. This will strengthen national food security and aid in achieving self-sufficiency in sugar in the future," Ghani stated.

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Tag: Bank Mandiri Holding Perkebunan Nusantara PTPN III SGN