SE Sulawesi to get huge sugar investment

JAKARTA (JP): A consortium of five state-owned plantations and a private firm will each invest Rp 360 billion in developing sugar cane in Southeast Sulawesi.

Southeast Sulawesi Governor La Ode Kaimoeddin said yesterday the consortium which includes the Sulawesi-based state-owned PTP Nusantara XVI, was developing 20,000 hectares of sugar cane plantations and a sugar refinery in Kendari regency.

Private firm PT Manubuhari plans to develop another sugar cane estate of about the same size and a sugar mill in the same regency, he said.

Kaimoeddin said the consortium had started planting cane seeds on 8,000 hectares and building the mill.

"The mill is scheduled to start commercial production by the end of 1998. It will produce between 1,000 and 2,000 tons of sugar a day," he said.

The developments are part of the government's program to relocate Java's sugar mills to other islands.

Java's sugar mills have become increasingly unprofitable because of a shortage of irrigated land caused by the urbanization of farming land.

At a House of Representatives' hearing last month, Minister of Agriculture Sjarifuddin Baharsjah said investors planned to develop eight sugar cane plantations and mills throughout the country. These included the Southeast Sulawesi developments.

He said PT Teknik Umum and PT Indo Lampung had plans to develop sugar cane plantations in Lampung, Sumatra, while PT Laju Perdana Indah has plans for a 20,000 hectare plantation in Ogan Komering Ulu, South Sumatra.

Investors have plans to open sugar mills in East Timor, West Sumbawa in West Nusa Tenggara, and Irian Jaya.

Ministry of Agriculture data shows that Indonesia harvested 28 million tons of sugar cane from 403,267 hectares last year. The canes produced 2 million tons of granulated sugar. (jsk)