The development of such integrated sugar plants would require a strategic policy that can create a conducive investment climate in the country, Industry Minister Agus Gumiwang Kartasasmita said in a statement here on Wednesday.
“We are focusing on the development of new plants which are integrated with sugar cane plantations, hence they can be operated at full capacity,” Kartasasmita said after visiting the PT Prima Alam Gemilang (PAG) sugar plant in Watu-watu village, Bombana district, Southeast Sulawesi.
The minister has issued a ministerial regulation (no. 10/2017) on the facility to obtain raw materials in the development of the sugar industry.
"The obligation to be integrated with sugar cane plantations means that the plantations would be owned by the factory or held in partnership with sugarcane farmers," he added.
"We applaud PAG Bombana which has (entered into a) mutual partnership with local residents to improve their welfare and help revive the national economy,” he remarked.
The sugar plant in Bombana has a production capacity of 12 thousand tons of cane per day (TCD) and 22,797 hectares of nucleus plantation, which has made it the largest sugar factory owned by a local businessman.
According to the ministry, Indonesia's sugar production has reached 2.2 million tons per year, while the annual demand stands at 5.8 million tons.
"Sugar is an essential good for the public, for direct consumption or (as) industry raw material, with demand continuing to increase in accordance with the growth of the population as well as the food and beverage industry," the minister said. (INE)
Related news: Sugar production projected to reach 540,000 tons in June-August
Related news: Bulog to supply 22,000 tons of sugar from India
EDITED BY INE
Translator: Sella PG, Sri Haryati
Editor: Suharto
Copyright © ANTARA 2020
