JAKARTA (Yosefardi) – Three state plantation firms, for first time, plan to jointly build the biggest sugar mill in the country, located in Banyuwangi, East Java, with investment cost of Rp1.5 trillion.

That 3 plantation firms are PT Perkebunan Nusantara (PTPN) III, PTPN XI and PTPN XII. They had set up joint venture (JV) company, PT Industri Gula Glenmore, which run the project. The construction of sugar mill, with capacity of 6,000 tons of sugar cane, will be handled by PT Rekayasa Industri.

PTPN III holds 60% interest on JV, while PTPN XII and PTPN XI own 30% and 10% respectively. PTPN III now plays as holding company for state plantation firms (PTPN I – PTPN XIV), though the government has not yet signed the creation of holding company for this business entities.