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Kamis, 16 Mei 2024

Minister of Investment Stresses the Importance of Local Collaboration in Sugar and Bioethanol Industry Investments in Merauke Regency

Jakarta, May 16, 2024 – Minister of Investment/Head of the Ministry of Investment and Downstream Industry/BKPM, Bahlil Lahadalia, reiterated the importance of involving local communities in regional investment projects. This statement was made during the Coordination Meeting for Accelerating Sugar and Bioethanol Self-Sufficiency in Merauke Regency, South Papua Province, held at the Ministry of Investment and Downstream Industry/BKPM office on Wednesday (May 15).

Previously, on April 19, 2024, President Joko Widodo signed Presidential Decree No. 15 of 2024 on the Task Force (Satgas) for Accelerating Sugar and Bioethanol Self-Sufficiency in Merauke Regency, South Papua Province. The Task Force was established to expedite the implementation of integrated plantation investments with sugar, bioethanol, and biomass power industries in Merauke Regency.


Following the Presidential Decree, the government plans to develop integrated sugarcane plantations with sugar and bioethanol industries covering two million hectares in Merauke Regency. Divided into four clusters, the investment will involve state-owned enterprises (SOEs) and private sector investors.


As Chair of the Task Force, Bahlil emphasized the need for investors to not only respect the rights of local communities but also to collaborate with them in conducting business activities.


“I have told investors that while they are welcome to invest there, they must ensure the rights of the region are upheld. Local rights must be respected, customary land release must be honored, and local communities must be involved in the business,” Bahlil stated.


During the meeting, Bahlil also introduced the core-plasma partnership scheme, which will be implemented in the development of integrated sugarcane plantations in Merauke Regency. Under this scheme, the core (investors) will assist the plasma (local communities) in developing plantations managed by the local people. This support will include financing, technological assistance, and other forms of training to ensure that the plasma produces crops that can be processed by the investors. This collaborative approach is designed to ensure that both the industry and local communities can thrive together.


“We need to ensure that the core progresses, but the plasma does not fail. Often, in industries like palm oil, the core survives while the plasma dies,” Bahlil noted.


Bahlil further highlighted that the success of the core-plasma scheme would benefit all stakeholders involved.


“It achieves national interests, strengthens food security, and develops profitable investments. But the local communities and regions must also receive their share. They cannot be neglected. This is a holistic approach,” Bahlil concluded.


For further information, please contact:

Ricky Kusmayadi

Head of Communications and Information Services Bureau

Ministry of Investment and Downstream Industry/BKPM

E-mail: rickykusmayadi@bkpm.go.id

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