Bangkok/London: Thailand’s Mitr Phol has recently acquired a 75 percent stake in the Indonesian sugar mill Kebun Tebu Mas (KTM), marking an expansion for Asia’s largest sugar and bioenergy producer in the region, reports Channelnewsasia.com.
Mitr Phol has expressed its intention to play a significant role in boosting Indonesia’s self-sufficiency in sugar production through this purchase of KTM, a major privately-owned sugar mill and refinery in the country.
While the exact financial details of the transaction were not disclosed, the move signifies Mitr Phol’s strategic efforts to expand its presence and influence.
Indonesia, a nation with a population of around 270 million and one of the world’s largest sugar importers, has set a goal to achieve self-sufficiency in sugar production by 2027. Additionally, the country is exploring the development of renewable sugar-based ethanol in the future.
In 2022, Indonesia produced approximately 2.4 million tonnes of sugar and consumes about 3.4 million tonnes annually.
KTM, situated in East Java, has an annual production capacity of approximately 400,000 tonnes of refined sugar. This information was provided by Czarnikow, a commodities trading and supply chain Services Company that assisted with the deal.
Stefano La Valle, Czarnikow’s head of corporate finance in Asia, highlighted Indonesia’s rapid development and potential opportunities in various sectors, including food, energy, and logistics.
As of now, KTM has not provided an immediate comment on the matter.
