Asia’s largest sugar producer, Thai-based Mitr Phol Sugar Corp Ltd has recently acquired a 75% stake in Indonesia’s PT Kebun Tebu Mas (KTM), which operates sugar cane-based factory as part of its expansion plan into Indonesia.
Mitr Phol in a statement said that “it envisages a pivotal role in advancing Indonesia’s self-sufficiency in sugar production” with its purchase of KTM, one of the country’s largest privately-owned sugar mill and refinery.
Indonesia is one of the world’s largest sugar importers with a population of roughly 270 million people, and it aims to be self-sufficient in sugar by 2027. The country is also eyeing on the development of renewable sugar-based ethanol. Indonesia produced 2.4 million tonnes of sugar in 2022 and consumes 3.4 million tonnes per year. KTM, based in East Java, produces about 400,000 tonnes of refined sugar a year.
According to a spokesperson from commodities trader and supply chain services company Czarnikow, “Indonesia is developing at a rapid pace and offers enormous potential for global consolidators in the food, energy and logistics space.”