Relocation affects plants

KUTA, Bali (JP): The government wants ethanol producers to adjust their programs to its plan to relocate 27 of its sugar factories in Java to other islands.

Director General for Agricultural and Forestry Industries Sujata said here Saturday that program adjustments are necessary for the nine ethanol producers in Java because they now rely on the supply of molasses from sugar factories.

The government recently called on the 27 sugar factories in Java to relocate their operations to other islands due to the lack of land available for sugar cane plantations. The other 27 mills will be maintained in Java.

Speaking during a plenary meeting of the Association of Spirits, Ethanol and Derivatives Producers here, Sujata said producers of spirits, ethanol and their derivatives need not worry about their future because large sugar plantations will be opened outside Java to support the relocated sugar cane plants.

Directorate General of Customs and Excise Soehardjo said the country's production of ethanol exceeded 24 million liters in the second quarter of this year, resulting in tax payments of Rp 9.8 billion to the government, up from 23.8 million liters produced in the same period of last year with tax payments of Rp 5 billion. (33/jsk)