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Currently the sugar factory industry in Indonesia is growing rapidly and the demand for sugar is getting higher. From the production process, the sugar factory industry produces liquid waste that contains high organic compounds so that it has an impact on the environment. To reduce these negative impacts, this review highlights the application of bagasse as an ingredient to treat sugar mill effluent. In handling sugar factory effluent, the processing includes activation, modification and application of modification methods such as chemistry and physics. From these modifications, physical modification considers the contact time, carbonization temperature, and mass of activated carbon. Chemical modification takes into account the pH value. In addition, the treatment of bagasse wastewater using bagasse as an adsorbent aims to reduce unused waste and overcome environmental impacts. Sugar factory effluent contains high quality organic compounds that have the potential to have a negative impact on the environment. Therefore, we need to reduce the negative effects on processing in sugar factories. The processing includes pre-treatment and treatment to reduce liquid waste. In the processing there are physical and chemical modifications. Physical modification based on contact time, carbon temperature, and mass of activated carbon. Chemical modification based on pH value and dosage. In addition, the conversion of bagasse to activated carbon is used to reduce the waste generated by sugar factories and to reduce the impact on the environment. [ABSTRACT FROM AUTHOR]