Accelerating National Sugar Self-Sufficiency, Bank Jatim Supports the Launch of the Special People's Business Credit (KURsus) Program for East Java Sugarcane Farmers.
Date: 06 may 2025Categories :
BONDOWOSO, May 6, 2025. In an effort to accelerate national sugar self-sufficiency, the Governor of East Java together with PT Sinergi Gula Nusantara (SGN) has launched the Special People's Business Credit (KURsus) for the East Java sugarcane farmer cluster, in collaboration with PT Bank Pembangunan Daerah Jawa Timur Tbk (Bank Jatim). Located at the Prajekan Sugarcane Plantation in Bondowoso, the launching event was attended by the Governor of East Java Khofifah Indar Parawansa, President Director of SGN Mahmudi, and Director of Finance, Treasury & Global Services of Bank Jatim Edi Masrianto, on Tuesday (6/5).
Edi explained that in this case, Bank Jatim acts as the channeling bank for KURsus for sugarcane farmers. This capital access assistance is a tangible manifestation of the company's efforts to support the development of the plantation sector and simultaneously boost the welfare of sugarcane farmers. "As the largest Regional-Owned Enterprise (BUMD) in East Java, we are committed to supporting the government's priority programs, one of which is national food security and sugar self-sufficiency. Bank Jatim wants to contribute to helping these farmers move up a class and become more prosperous," he stated.
Through this collaboration, Edi continued, Bank Jatim wants to ensure that farmers get access to financing that is cheap, easy, and accompanied by sufficient assistance. This way, sugarcane farmers can contribute even more significantly to driving the economy. "Bank Jatim sees that the agricultural sector has great potential to drive national and East Java economic growth. Therefore, through strategic partnerships like the one we are undertaking with SGN, we strive to create an inclusive and sustainable ecosystem, where farmers will have easier access to financing tailored to their needs," he explained.
Edi hopes that this synergy can provide tangible benefits for sugarcane farmers who are SGN partners, as well as support the creation of a more advanced and sustainable agricultural ecosystem in East Java. "We are optimistic that this collaboration will bring a positive impact to all parties involved. We want to be a strategic partner in building a modern and highly competitive agricultural ecosystem, in line with Bank Jatim's vision to encourage financial inclusion in various sectors," he added.
Throughout 2024, Bank Jatim was able to record credit growth of 16.98 percent (YoY). This figure is above the national average growth of only 10.39 percent (YoY) according to the OJK (Financial Services Authority). For its productive credit portfolio, Bank Jatim successfully reached Rp 29.65 trillion, an increase of 25.88 percent (YoY). This increase was supported by the micro segment which grew 23.34 percent (YoY), the retail and medium segment which rose 68 percent, and the corporate segment which increased 1.28 percent (YoY). For the micro segment itself, Bank Jatim's KUR disbursement in 2024 stood at Rp 5.61 trillion and Jatim Mikro at Rp 3.32 trillion.
Meanwhile, Khofifah conveyed that the launch of the Special KUR for the Sugarcane Farmer Cluster is very important because of the coordination with the Coordinating Ministry for Economic Affairs, PT SGN, and banks including Bank Jatim. Furthermore, this Sugarcane Farmer KURsus is believed to provide a multiplier benefit. "Utilize this KUR for productive enterprises, not consumption. Such as the procurement of superior seeds, organic fertilizer/environmentally friendly insecticides, and efficient cane processing tools. Because success is not only measured by the quantity of sugar but also by quality and sustainability," Khofifah advised all guests present.
According to Khofifah, East Java is the highest sugar producer in Indonesia. East Java's sugarcane production in 2024 reached 16.69 million tons from 238,135 hectares, equivalent to 50 percent of the total national production. From this amount, 1.26 million tons of white crystal sugar were produced. This figure confirms East Java's position as the main contributor to the national sugar supply, with an average contribution of about 50 percent annually.
Therefore, Khofifah stated that this KURsus is a tangible form of a joint effort to fight for the welfare of sugarcane farmers. "We want sugarcane farmers to move up a class, from field laborers to resilient and dignified food entrepreneurs," she affirmed. The KURsus has a fixed interest rate of 6% and supports refinancing for plantation rejuvenation (> 25 years) as well as the adoption of superior varieties that can increase yield from 7% to 8–9%.
The number one person in East Java also requested full support from banks and plantation agencies throughout East Java so that the working capital of sugarcane farmers can be met evenly. "To Bank Jatim, which pioneered the implementation of this special KUR, it is hoped that the KUR disbursement procedure can be fast, transparent, and precise, so that no farmer is left behind," Khofifah said.
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