Sugar mills not for sale: Sjarifuddin

JAKARTA (JP): Minister of Agriculture Sjarifudin Baharsjah said yesterday the government would not privatize state-owned plantation companies' sugar mills in Java even though they were inefficient.

"Their inefficient operations are not caused by poor management but by other reasons," he said after opening a four- day ministry workshop.

He said the sugar mills of state-owned plantation companies like those owned by PT Perkebunan Nusantara (PTPN) in Java were inefficient because their sugar cane plantations were getting smaller in line with the growth of the manufacturing industry.

He also said the machinery at the sugar mills was too old and farmers preferred to plant rice in their farm areas.

Sjarifudin said just 27 of the 57 sugar mills in Java operated inefficiently and their operations would be moved to other islands which offer up to 900,000 hectares for sugar cane plantations.

Chairman of the National Logistic Agency Beddu Amang said recently PTPN's needed to invite private companies to help manage their mills and improve their efficiency.

Sjarifudin said the companies would keep operating their sugar mills while expanding their plantation areas to other islands. (10)