Sugar mills not for sale: Sjarifuddin

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)