SOE Ministry to accelerate revitalization of sugar mills

SOE Ministry to accelerate revitalization of sugar mills

Illustration. Farmers harvest sugar cane to be sent to sugar mills, in Ngawi, East Java. (ANTARA PHOTO/Ari Bowo Sucipto)

Jakarta (ANTARA News) - State-Owned Enterprises (SOE) Ministry is accelerating the revitalization of the country`s sugar mills, particularly factories under state plantation firms PT Perkebunan Nusantara Grup (PTPN Grup) and PT Rajawali Nusantra Indonesia (PTRNI).

Aimed at increasing production and meeting national sugar need, the revitalization is carried out to increase efficiency, raise milling capacity, improve sugar quality and downstreaming products.

"This is important for supporting national food resilience and self-sufficiency in sugar. The steps will reduce costs for SOE sugar production which could be sold to the people at an affordable price," Wahyu Kuncoro, deputy for agro industry and pharmacy of the SOE Ministry, said in written statement on Friday.

Although it is sold at an affordable price level, yet it would not ignore efforts to improve the welfare of can sugar farmers, partners, company employees and state-owned firms` profit.

Kuncoro said SOE sugar production up to now is recorded at 1.16 million tons, consisting of 846 thousand tons by PTPN Group, 271 thousand tons by PTRNI and 35.5 thousand tons by P`T Gendhis Multi Manis (GMM).

The sugar is produced from sugar cane area totaling 224 thousand hectares, consisting of 172 thousand hectares of sugarcane area of PTPN Group, 46.2 thousand hectares of sugarcane area of PTRNI and 5.5 thousand hectares of cane sugar land of GMM.

"The sugar production of SOEs this year is estimated to be 1.19 million tons or increased from last year`s only 1.16 million tons. In the next 5 years, according to SOE sugar roadmap, sugar production is projected to increase to 3.2 million tons," he explained.

Reporting by Indriani
Editing by Andi Abdussalam