Minister Rini Asks Sugar Factory to Become Avalis for Sugarcane Farmers

By : Hariyanto And Aldo Bella Putra | Thursday, November 16 2017 - 22:30 IWST

Menteri BUMN Rini Soemarno (Hariyanto/ INDUSTRY.co.id)
Menteri BUMN Rini Soemarno (Hariyanto/ INDUSTRY.co.id)

INDUSTRY.co.id

Jember - Minister of State-Owned Enterprises Rini Mariani Soemarno stressed to all sugar mills to become avalis for commercial credit of sugar cane farmers. Because, with land above two hectares, sugar cane farmers can no longer obtain business credit people (KUR).

"I think the KUR program is very good, the use is very high, it is very exciting, but I emphasize again for farmers who plant on two hectares of land, if the calculation is correct, can use commercial credit," said Rini on the sidelines of the event ' Declaration of Increasing Productivity of Sugar Cane: Synergy of SOEs to Achieve Self-Sufficiency of Sugar Competitiveness', in Jember, East Java, Wednesday (15/11/2017).

In commercial credit affairs, sugar cane farmers have the support of the sugar factory that became avalis. "So I emphasize here, SOE sugar factories have to be avalis, to be the guarantor of sugar cane farmers, because the farmers will buy the sugarcane (farmers)," said Rini.

Chairman of the Board of Trustees of the Central Executive Board of the Association of Indonesian Smallholder Sugarcane Farmer Arum Sabil confirmed if sugarcane farmers need financial support and provision of fertilizer on time.

"If we see (this season) there is a sugar cane plant that was not well cared for due to financing and fertilizer issues.Franking farmers holding KUR (People's Business Credit) system that has limited land requirements should not be above two hectares. land on two hectares (can credit and subsidized fertilizer) from where? " she said.

If left unchecked, then the issue will have an impact on the national self-sufficiency program. Therefore Arum supports commercial credit for smallholder sugarcane farmers with sugar factories as avalis.

"As for fertilizers will be prepared kiosks through a special distributor of farmers 'cooperatives and farmers' enterprises to distribute non-subsidized fertilizer," she said. (bj)

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