Investors invited to build sugar mills outside Java<\/p>\n
JAKARTA (JP): Chairman of the National Logistics Agency
\n(Bulog) Beddu Amang enticed both domestic and foreign investors
\nSaturday to take advantage of the government's plan to set up 15
\nnew sugar mills outside Java in the next few years.<\/p>\n
\"I challenge both local and foreign investors to take part in
\nthe establishment of new sugar factories,\" he said after
\ndelivering his speech at the University of North Sumatra in
\nMedan.<\/p>\n
Beddu said the planned 15 sugar mills would be located in
\nSulawesi, East Timor, Kalimantan and on Seram island in Maluku
\nand possibly other parts of the country such as North Sumatra,
\nSouth Sumatra and Lampung provinces.<\/p>\n
Java, the country's main sugar producing area, is no longer a
\nsuitable location for new sugar mills as productive land to
\naccommodate sugar cane plantations is no longer adequate, he
\nsaid.<\/p>\n
At present there are 69 sugar mills, 58 of which are in Java,
\nwith a combined processing capacity of around 2.75 million tons
\nof cane per day.<\/p>\n
Beddu said that 27 of the 58 sugar factories in Java are no
\nlonger efficient due to their out-dated technology.<\/p>\n
\"The 27 high-cost sugar factories will be gradually
\nscrapped...their sugar plantations will be transferred to more
\nproductive sugar mills,\" he said.<\/p>\n
Beddu said earlier that this year's sugar production is
\nexpected to reach 1994's level of 2.5 million tons. Last year,
\nsugar production dropped by around 14 percent owing to bad
\nweather.<\/p>\n
This year, Indonesia imported around 137,000 tons of sugar in
\nJanuary and around 20,000 tons in February to meet the surge in
\nthe domestic consumption during the period.<\/p>\n
Imports reached 400,000 tons last year.<\/p>\n
According to earlier reports, the Salim Group, which currently
\noperates two sugar mills in Lampung, is constructing four more
\nmills in the province to boost the business group's sugar
\nproduction.<\/p>\n
The group is to invest Rp 1.65 trillion ($750 million) in the
\nfour planned sugar mills, which will be designed to have a
\ncombined processing capacity of 62,000 tons of sugar cane per
\nday. (hen)<\/p>",
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"sponsor": "Okusi Associates",
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