The sugar mills would be built in Bojonegoro, Tuban, Lamongan, and Madura which had the potential to develop sugarcane plantations, Vice Agriculture Minister Bayu Krisnamurti said following a meeting with East Java Governor Soekarwo here on Tuesday.
The government has set the target of national sugar production at 5-5.5 million tons per year. The country now produces 2.5-3 million tons of sugar per year.
To achieve the target, the government has adopted a number of policies, including allocating Rp9 trillion in funds for the revitalization of sugar mills across the country.
"Only Rp1.5 trillion of the funds has been absorbed so many sugar mills have not been revitalized," he said.
He said the government also had allocated Rp55-60 billion in funds for the development of sugarcane seedling.
Governor Soekarwo suggested that the four sugar mills be built far from the existing sugar mills.
The presence of the four sugar mills would hopefully encourage the existing sugar mills to improve their competitiveness, he said.
"Therefore, we have signed a contract with the management of the four sugar mills to produce sugar with a sucrose content of 8 percent. Otherwise, they will not be allowed to operate. By doing so, the existing sugar mills will increase their productivity to be able to compete with the new sugar mills," he said.
(SYS/S012)
Editor: Suryanto
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