Indonesia : GULA implements upstream-downstream project for national sugar ecosystem
Indonesia’s PT Aman Agrindo is developing three sugar projects in Banten, Central Java and Riau to strengthen its integrated sugar ecosystem. Projects include a 500-ton-per-day mill, a 1,000-ton-per-day mill acquisition and a 600-ton-per-day refined sugar facility, supported partly by IPO proceeds.
Sugar plantation company PT Aman Agrindo Tbk (GULA) is implementing three projects across Banten, Central Java, and Riau as part of its efforts to strengthen production capacity and develop an integrated national sugar ecosystem.
The company expects the projects to begin operating in stages this year, with each initiative covering different parts of the sugar supply chain.
Three projects
In Pandeglang, Banten, GULA is constructing a new sugar mill targeted for completion in the fourth quarter of 2026. The facility will have a crushing capacity of 500 tons of sugarcane per day and will be supported by plantations developed under a nucleus-plasma scheme, initially covering 1,250 hectares (Ha) with potential expansion to 15,000 Ha.
In Sragen, Central Java, GULA is preparing to acquire an operating sugar mill with a crushing capacity of 1,000 tons of sugarcane per day. The facility is supplied entirely by sugarcane farmers through a plasma scheme, with the acquisition valued at around Rp350 billion (approximately US$21.5 million).
Meanwhile, in Riau, the company is developing a facility to process raw sugar into refined white sugar, with a capacity of 600 tons per day. The project is also supported by potential sugarcane plantation development covering 5,140 Ha.
“These three projects are part of the company’s strategy to gradually strengthen production capacity while building an integrated sugar ecosystem from upstream to downstream,” GULA President Director Andreas Utomo said, as cited by CNBC Indonesia, on August 11, 2026.
IPO proceeds support expansion
GULA is financing part of its expansion using proceeds from its initial public offering (IPO) in August 2022. Most of the funds have been allocated to plant construction, supporting facilities, and down payments for machinery.
As of June, 30, 2026, the company had used around Rp49.13 billion (approximately US$3.02 million), or 98% of its net IPO proceeds of Rp50.34 billion (approximately US$3.1 million).
The remaining Rp1.22 billion (approximately US$75,000) is held in banking instruments and will be used in accordance with the company’s plans.
Andreas said the use of IPO proceeds reflects the company’s commitment to establishing a foundation for long-term growth.
“We are committed to implementing all planned uses of the funds transparently and appropriately to create added value for the company and its shareholders,” Andreas said.
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Source : Indonesia Business Post
