Mitr Phol to Buyout 75% of Indonesia's Sugar Mill Kebun Tebu Mas (KTM)

Mitr Phol of Thailand announced the acquisition of a 75% stake in Indonesian sugar mill Kebun Tebu Mas (KTM) as Asia's largest sugar and bioenergy producer expands its footprint on the continent. Mitr Phol told Reuters that the purchase of KTM, the country's largest privately-owned sugar mill and refinery, "envisages a pivotal role in advancing Indonesia's self-sufficiency in sugar production." The deal's value was not disclosed.

With a population of around 270 million people, Indonesia, one of the world's largest sugar importers, aims to be self-sufficient in sugar by 2027 and then develop renewable sugar-based ethanol.

In 2022, the Southeast Asian country produced 2.4 million tonnes and consumed 3.4 million tonnes.

According to commodities trader and supply chain services firm Czarnikow, which advised on the transaction, KTM, located in East Java, produces approximately 400,000 tonnes of refined sugar per year.

"Indonesia is rapidly developing and offers enormous potential for global consolidators in the food, energy, and logistics space," said Stefano La Valle, Czarnikow's Asia head of corporate finance.