Jakarta, Aug. 29 -- State-owned food holding company ID FOOD will significantly increase its absorption of locally produced sugar following a Rp1.5 trillion (approx. US$91 million) shareholder loan from PT Danantara Asset Management.

The move aims to stabilize sugar prices and ease the burden of unsold stockpiles at sugar mills.

"This capital support allows us to absorb farmers' sugar at the government's reference purchase price (HAP), ensuring price certainty and fair returns at the farm level," said ID FOOD President Director Ghimoyo in a press release on Friday.

The off-take scheme covers sugar produced at mills owned by PT PG Sinergi Gula Nusantara (SGN) and ID FOOD.

As of August, ID FOOD has absorbed 58,000 tons of sugar-21,500 t...