Four Java sugar plants to be closed down<\/p>\n
JAKARTA (JP): The government will close down four sugar
\nfactories in Java next month, the first of 26 plants recommended
\nfor closure because they were inefficient or too small, an
\nofficial of the Ministry of Industry and Trade said.<\/p>\n
M. Yamin Rachman, Director for the Agro Industry, said the
\nclosures were part of a restructuring program in line with
\nIndonesia's commitment to the International Monetary Fund to
\nincrease competitiveness of the local sugar industry.<\/p>\n
Yamin said the government would announce details of the
\nclosure, including the financial arrangements, next month, Bisnis
\nIndonesia quoted on Friday.<\/p>\n
One of the factories to be shut down is owned by the country's
\nbiggest sugar producer, state-owned PT Perkebunan Nusantara XI,
\nhe said. He did not identify the other three.<\/p>\n
The government has long considered closing down inefficient
\nfactories but delayed because of lack of funding, he said, adding
\nthat closing a factory would cost about Rp 20 billion ($2.2
\nmillion), including paying off the workers.<\/p>\n
\"The Minister of Finance insists the costs of closure be paid
\nby the companies themselves,\" he said.<\/p>\n
Yamin said the Directorate General of Plantations had
\nrecommended the closure of 26 of 57 existing sugar factories on
\nJava because they were inefficient.<\/p>\n
\"That means there are 22 more factories to be either merged or
\nshut down,\" he said, adding that plants with a processing
\ncapacity of less than 2,000 tons of sugar cane per day could be
\nmerged instead of being shut down.<\/p>\n
State Minister of Investment and State Enterprises Development
\nRozy Munir said earlier that the government would need $307.5
\nmillion to close inefficient sugar factories and strengthen the
\ncompetitiveness of the sugar industry.<\/p>\n
Separately, an official from the Office of the State Minister
\nof Investment and State Enterprises Development, said it was
\nimpossible to relocate the factories outside of Java because of
\nthe large investment involved.<\/p>\n
\"To relocate a sugar factory with a capacity of 8,000 tons of
\nsugar cane a day, an investment of Rp 1 trillion is needed,\"
\nB.S.M. Hutabarat, who heads a team for sugar industry
\ndevelopment, said. (10)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/four-java-sugar-plants-to-be-closed-down-1447893297",
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