Relocation affects plants

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)