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Thousands of Indonesian sugarcane farmers face uncertainty as Blora sugar mill remains shut

Thousands of Indonesian sugarcane farmers face uncertainty as Blora sugar mill remains shut

ChiniMandi English 2 weeks ago

Jakarta: Thousands of sugarcane farmers in Indonesia's Central Java province are facing growing uncertainty over the future of their crops as the PT Gendhis Multi Manis (GMM) sugar mill is unlikely to resume operations for the 2026 crushing season.

The prolonged shutdown has raised concerns that large volumes of sugarcane could once again remain unprocessed, threatening farmers' incomes.

Farmers in Blora, a major sugarcane-growing district, say they suffered losses of nearly 500 billion rupiah during the 2025 crushing season after the mill failed to purchase and process their cane. The district's sugar industry is heavily dependent on PT GMM, the region's only sugar mill, which has been unable to operate due to technical problems.

According to local farmer leaders, around 8,000 sugarcane farmers cultivate approximately 8,000 hectares of cane in the district. Of this area, nearly 5,000 hectares of crop is already ready for harvest. With average yields estimated at 70 tonnes per hectare, total production is expected to reach about 350,000 tonnes.

Sunoto, chairman of the Blora branch of the Indonesian Sugarcane Farmers Association (APTRI), said the continued closure of the mill has left growers struggling to find buyers for their crop. He noted that farmers have repeatedly raised the issue with local authorities, government agencies and even the presidential office, but a permanent solution has yet to be found.

The farmers' association has also sought discussions with parliament to address the crisis, although no response has been received so far.

To prevent crop losses, farmer groups have been negotiating with sugar mills in other districts and provinces. Some cane has already been diverted to mills in Trangkil, Pakis, Rendeng, Sedono and Kebun Tebu Mas. However, transporting cane over longer distances has significantly increased costs, reducing farmers' profitability.

According to APTRI, farmers could earn a net profit of around 4.5 million rupiah per hectare if the local GMM mill were operational. When cane is transported to distant mills, profits fall to roughly 2.1 million rupiah per hectare because of higher logistics expenses.

PT GMM management has attributed the shutdown to repeated failures in two key steam boilers used during production. Krisna Murtiyanto, Operations Director of the company, said both the coal-fired and bagasse-fired boilers experienced serious technical issues during 2025, forcing the mill to halt operations.

He explained that extensive repairs are required and the company has requested financial support from its principal shareholder, Perum Bulog. However, administrative procedures and delays in obtaining independent technical assessments have slowed progress on the repair work.

According to the company, the restoration process could take four to five months once work begins, making it unlikely that the mill will be ready for the 2026 crushing season.

Meanwhile, Ngaliman, head of Blora District's Food, Agriculture, Livestock and Fisheries Department, has urged farmers not to panic and to begin harvesting their cane on schedule. He said the government would assist growers in securing sales to nearby sugar mills and work to ensure they receive fair prices for their produce.

The uncertainty surrounding the region's only sugar mill has left thousands of farmers concerned about another difficult season, as they continue to seek a long-term solution to safeguard sugarcane production and livelihoods in Blora.

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Disclaimer: This content has not been generated, created or edited by Dailyhunt. Publisher: ChiniMandi English