The increased demand for sugar needs to be balanced with the development of new sugar industries integrated with sugarcane plantations, and the government provides facilities and incentives for development of the industryEast Sumba, East Nusa Tenggara (ANTARA) - The Industry Ministry applauded PT Muria Sumba Manis' (MSM's) development of a sugar factory in the remote area of East Sumba District, ENT, as it would support the government to boost eastern Indonesia's economy.
"We hope that the investment would support efforts to achieve self-sufficiency in sugar and improve the local economy as well as the welfare of local residents," the ministry's Director General of Agro Industry, Putu Juli Ardika, noted during a working visit to MSM in East Sumba, ENT, on Friday.
Ardika spoke of the government's continued support to the company through its strategic policies.
According to Ardika, the national sugar industry has faced various challenges, including the low production capacity of existing sugar factories, with an average production of around 2.2 million tons annually during the past five years.
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The figure has been far below the total national demand of six million tons that included 2.8 million tons of demand for direct consumption and 3.2 million tons for food, beverage, and pharmaceutical industries.
The shortfall of 3.8 million tons of sugar has been met through imports, he noted.
"The increased demand for sugar needs to be balanced with the development of new sugar industries integrated with sugarcane plantations, and the government provides facilities and incentives for development of the industry," he noted.
The establishment of a new sugar factory should be lauded, as it requires extraordinary efforts, especially for new sugar factories located in remote areas.
"We hope that the increase in production through the new sugar factory would reduce imports, which is in line with the Industry Ministry's program of import substitution," he affirmed.
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By lowering imports, Ardika noted that Indonesia could save foreign exchange, strengthen the current account balance, create jobs, and in the end have a multiplier effect on the economy.
MSM established an integrated crystal white sugar factory in Wanga, East Sumba District, that has absorbed 2,511 workers.
MSM Managing Director Budi Hediana noted that investment in the first stage had reached Rp4.4 trillion, with production capacity of six thousand ton of cane per day (TCD).
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"For the second stage, our investment reaches Rp5.1 trillion, with a capacity of 12 thousand TCD," he remarked.
Hediana is optimistic that the MSM investment in remote areas would revive the local economy and attract new investment.
"This is quite hard for us because we are located in an outermost, remote and underdeveloped area. We want to make East Sumba powerful," he added.
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Translator: Sella P Gareta, Sri Haryati
Editor: Fardah Assegaf
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