Published on August 11, 2025, by The Jakarta Post
by Ni Made Tasyarani
The government has tasked Danantara with financing a range of projects, from overhauling underperforming fish farms along Java’s northern coast to reviving long-stalled waste-to-energy (WtE) projects.
State asset fund Danantara is set to disburse Rp 1.5 trillion (US$92.25 million) to purchase unsold sugar stored in factory warehouses, according to the industry association.
Herman Fauzi, secretary of the Indonesian Sugarcane Farmers Association (APTRI) in the Assembagoes subdistrict of Situbondo, East Java, said Danantara had pledged the funds following talks with the Coordinating Food Minister and Coordinating Economy Minister.
“Last week, APTRI’s central board coordinated with the relevant ministries and reached a solution whereby Danantara will channel the funds through PT Sinergi Gula Nusantara [SGN] to make a temporary purchase of sugar from farmers,” he said on Saturday, as quoted by news agency Antara.
According to Herman, the Assembagoes sugar factory (PG Assembagoes) has stored thousands of tonnes of unsold sugar over the past month, as it had to reject bids from merchants offering prices below the reference price (HAP) of Rp 14,500 per kilogram.
“For four weeks now, merchants have been offering to buy the sugar at only Rp 14,350 per kg and even Rp 14,200 per kg, but the minimum sugar price is Rp 14,500,” Herman said.
He attributed the low prices for farmers’ sugar to an influx of refined sugar on the market, noting that refined sugar is intended for industrial use, particularly in the food and beverage (F&B) sector, and not for daily consumption.
“Refined sugar has a stark white color, is less sweet than consumption sugar and is [more affordable],” he added.
PG Assembagoes general manager Mulyono reported that unsold sugar in the factory’s warehouses reached 5,000 tonnes over the past four weeks. “Because the sugar remains unsold, we are unable to pay the farmers whose sugarcane is processed at Assembagoes,” he said.
Danantara was not immediately available for comment.
The government has tasked Danantara with financing a range of projects. In June, a minister announced that Danantara would support plans to overhaul 78,000 hectares (ha) of underperforming fish farms along Java’s northern coast, starting this year with a Rp 26 trillion investment.
The program will begin with 20.4 ha of shrimp ponds in the West Java regencies of Bekasi, Karawang, Subang and Indramayu, with most of the funding coming from the state asset fund.
“The investment, entirely from Danantara, is in the form of cash,” Maritime Affairs and Fisheries Minister Sakti Wahyu Trenggono said, as quoted by Tempo.
The project will be rolled out in phases with the aim of boosting aquaculture yields and strengthening food security in Java’s densely populated coastal belt, commonly known as Pantura. It is expected to generate up to 100,000 jobs over time, with at least 40,000 workers hired directly.
Earlier in June, the government tapped Danantara to help revive long-stalled waste-to-energy (WtE) projects under a new regulation placing the agency at the center of the initiative. Danantara would be authorized to shortlist developers, structure project ownership with local governments or private firms, and oversee all operations, from plant construction to electricity sales to state utility PLN.
Funding would be channeled through Danantara by the Finance Ministry, with allocations from both state and regional budgets.