RMI and Economic Blessings for Blitar

Rejoso Manis Indo, 08 September 2022 | Penulis : Muhamad Devi Riswandi

Sugarcane Shop. MSME stalls located in the PG RMI area during the 2019-2021 milling season have successfully transacted with a fleet of 228,179 trucks worth Rp 11.4 billion.

The Sugar Factory (PG) of PT Rejoso Manis Indo (RMI) was established in Blitar Regency at a fairly large cost. The total initial investment issued by PG RMI reached Rp 3.42 trillion. Such an investment is expected to be able to make a significant contribution to efforts to achieve national sugar self-sufficiency.

Not only that. The large investment that has been issued by PG RMI is also targeted to be able to restore Blitar Regency as a mainstay producer of sugar cane and consumption sugar in East Java Province. Thus, Blitar will feel the benefits, especially in terms of economy. This multiplier effect will be a necessity and a blessing for the people of Blitar and its surroundings.

Many important progress has been made by PG RMI in achieving this target. The following are some of the economic impacts of the existence of PG RMI since it started operating in 2019 until 2021. This positive trend is predicted to continue to increase in the following years along with the increase in production which has not yet reached 100 percent of its installed capacity.

Direct Impact for Farmers

Sugarcane farmers involved in the production of PG RMI sugar, in 2019, amounted to 300 people. Then it will increase to 893 people in 2020, and to 998 people in 2021. By the end of 2022, the number of farmers is predicted to reach 1,200 people.

Based on this data, in 2022 PG RMI is projected to record a total purchase of 2,658,779 tons of sugar cane from 3,391 farmers cumulatively, with a transaction value of Rp 2,078,260,437,908 (Rp 2,078 trillion).

Impact on Blitar and Surrounding Communities

Until 2022, as many as 934 people are registered to work at PG RMI. The details are 492 employees, 145 outsourcing workers, 167 SMEs, and 130 daily workers. The number of Blitar residents who work at PT RMI occupies more than 70 percent of the total workers. If using the lowest salary benchmark according to the minimum wage of Blitar Regency, then every month more than Rp. 1.86 billion flows to almost a thousand Blitar residents in the form of salaries.

Economic Impact during the Millennium

During the 2019-2021 milling season, PG RMI has purchased 1.8 tons of sugar cane from farmers with an average price per ton of sugar cane of IDR 781,660. Thus, the total purchase value of sugar cane reached Rp 1.4 trillion.

During the 2019-2021 milling season, the economic stretch can also be seen from the transactions that occur at MSME stalls. Of the 228,179 trucks recorded for sending sugar cane to PG RMI during this period, there have been transactions amounting to Rp. 11,408,950,000 (Rp. 11.4 billion) between the truck drivers and these stalls.

Economic Impact of Melting Raw Sugar Operations

From 2019-2021, the cost of transporting raw sugar to transporters reached Rp. 29,595,967,250. Meanwhile, transactions between truck drivers (5,732 trucks) and UMKM stalls were recorded at Rp. 286,600,000.

Economic Impact of Product Transport

From 2019-2021, there were 16,252 trucks carrying sugar and its derivative products from PG RMI. The derivative products in question are molasses, bagasse, and milas. Transactions between the drivers and the UMKM stalls were recorded at Rp. 812.600.000. Meanwhile, the cost of transporting blothong & fly ash by MSMEs and transporters reached Rp 4,581,516,950 (Rp 4.58 billion).

Economic Impact of Labor and Cooperation with MSMEs

From 2019-2021, PG RM has spent Rp 1,369,382,763 (Rp 1.37 billion) to be paid to daily workers.

PG RMI also cooperates with local MSMEs in terms of maintenance (machinery, building, etc.). The costs incurred for this from 2019 to 2021 reached Rp 747,880,654,313 (Rp 747 billion).

Social Impact

PG RMI has carried out its social responsibility by holding a number of activities. The total funds that have been issued by PG RMI for corporate social responsibility (CSR) during 2019-2021 amounted to Rp 1,009,498,250 (Rp 1.01 billion). *