Govt' to Build New Sugar Factories  

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  • Pemerintah Targetkan Bangun 10 Pabrik Gula Rp 42,5 Triliun

    Pemerintah Targetkan Bangun 10 Pabrik Gula Rp 42,5 Triliun

    TEMPO.CO, Jakarta - The Ministry of Agriculture plans to develop the development of 10 new large-scale sugar plants. Gamal Natsir, Director General of Plantation for the Ministry of Agriculture, said that the investment value for the development of the 10 plants costs Rp 42.5 trillion. "The development needs to be done because from the 52 existing sugar plants in Indonesia, only 10 are still properly operating," he said on November 18, 2014.

    Gamal said that the development of the 10 plants will be located in national sugarcane areas in Aceh, South Sumatera, Lampung, West Nusa Tenggara, South Sulawesi, Gorontalo and Papua. Every plant is targeted to be able to process 30,000 tons of sugarcane (TCD) per day, and is set to operate in 2017.

    The development, said Gamal, will be done to support the government's plan to expand sugarcane plantation areas up to 600,000 hectares in the next three years and to boost national sugar production. The ten areas are chosen based on its climate, investor interest, and the presence of adequate infrastructure such as harbors and roads.

    "Indonesia actually has up to 13 million hectares of land available for sugarcane plantation, but we are currently focusing on 600,000 hectares first," said Gamal.

    With the current scenario, the government is confident to reach 2.95 tons of sugar production by 2015 and will certainly reach 3.03 million tons in 2017.

    In addition to developing new plants, the government also plans to revitalize 42 sugar plants that are operating below its optimum capacity, only capable of processing 6,000 tons of sugarcane per day.