Plantation companies inefficient

JAKARTA (JP): Directorate General of Plantations Muhammad Badrun warned yesterday that inefficiency will render the country's plantation sectors uncompetitive on the international and domestic markets.

He said at a four-day Ministry of Agriculture workshop that the inefficiencies are caused by a lack of technology, the excessive use of artesian water and the high population density.

He said that the restructuring of state-owned plantation companies is expected to help improve efficiency in the plantation sector.

The government has been reforming state-owned plantation companies since May 1994, when it began realigning the 26 state- owned plantation companies into nine groups to improve their efficiency and productivity.

"We expect that the restructuring of the state-owned plantation companies can be completed as quickly as possible," he said.

Ministry data show that the country's cacao production increased from 1,100 tons in 1968 to 271,100 tons in 1994, while palm oil production increased from 181,000 tons to 4.09 million tons. The country's production of coffee increased from 150,000 tons to 446,400 tons and sugar from 749,000 tons to 2,35 million tons. (31)