Publicly listed food giant PT Indofood Sukses Makmur will invest Rp1.2 trillion ($128 million) to build two sugar refineries in Pati, Central Java and in Ogan Komering Ulu, South Sumatra, Asia Pulse reported.
The two factories, to be operated by its subsidiary PT Lajuperdana Indah, are expected to be operational in 2010, Indofood director Thomas Tjhie said, according to Bisnis Indonesia.
Tjhie said the Ogan Komering refinery will have a processing capacity of 8,000 tons of sugarcane per day and the one in Pati 3,000 tons.
He said Bank Rakyat Indonesia has pledged a loan of Rp992.49 billion and Bank DBS Indonesia Rp175 billion for the project.
Indonesia still relies on imports for part of its domestic consumption of sugar.