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32 Investors Intent To Build Sugar Plant in Indonesia

Posted by Hardiono Handoko on September 2, 2011 at 1:40 PM

At least 32 investors are intending to build new sugar factories in Indonesia. There are around 51 sugar factories available in the country for the time being in which 41 out of the total number are owned by state-owned enterprises.

"A minimum area of 300 thousand hectares is needed," said Industry Minister MS Hidayat on Monday, July 25.

To comply with investors' demand, Forestry Minister allocates 500 thousand hectares of abandoned sugar-cane plantation for the factories.

Hidayat said the landplots are situated in Lampung, South Sumatra, Jambi and Sulawesi. "The development of the new factories is in line with the direction from President Susilo Bambang Yudhoyono, who urged Indonesia to have sugar sufficiency by 2014," he said.

The need for sugar in 2014 would predictably reach 5.7 million tons.

Meanwhile, the production in 2009 was only at 2.6 million tons, in contrast with the national demand of 4.85 million tons.

Indonesia is still categorized the third top sugar importer worlwide following Russia and India.

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Categories: Sugar Plant Investment, National Sugar

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