Jakarta, CNBC Indonesia – Minister of Agriculture (Mentan) Andi Amran Sulaiman said that he had discussed with the Ministry of Environment and Forestry regarding plans to build a sugar factory and sugar cane plantation in Papua.
“I discussed earlier, the Director General of Forestry has prepared the land, we will check it directly later,” said Amran when met at the Jakarta Ministry of Agriculture (Kementan) office, Friday (10/11/2023).
The land that has been prepared, he said, covers an area of more than 1 million hectares in the Merauke area, Papua.
“More than 1 million (hectares), in Merauke,” he said.
The opening of this sugar factory is the government’s effort to boost domestic sugar production.
Previously, Amran said that currently his party and the Ministry of BUMN were discussing plans to build a sugar cane plantation and sugar factory in Papua. Because according to him, Papua is one of the regions in Indonesia that has a suitable agroclimate to boost domestic sugar cane production.
Apart from that, the large land factor was also a consideration when building a sugar factory at the eastern tip of Indonesia.
“So there are a lot of considerations, this is a big industry. So it is very strategic if it is built in Papua,” said Amran when met at the Jakarta Ministry of Agriculture (Kementan) office, Tuesday (7/11/2023).
 Photo: President Joko Widodo inspects the Haji Isam Sugar Factory, Southeast Sulawesi (Presidential Secretariat Press Bureau/Lukas)President Joko Widodo Visits the Haji Isam Sugar Factory, Southeast Sulawesi (Presidential Secretariat Press Bureau/Lukas) |
As for the investment value, said Amran, one sugar factory can reach around IDR 2.5 trillion-IDR 3 trillion with a production capacity of around 8,000-12,000 tons of cane per day (TCD).
“I’m a sugar cane expert. So for 1 factory (the investment value) is IDR 2.5 trillion-IDR 3 trillion. Depending on the capacity, usually for one with a capacity of IDR 2.5 trillion-IDR 3 trillion it can be 8,000-12,000 TCD,” he explained.
Amran said that the sugar factory in Papua is planned to be built in an area belonging to the state-owned food holding company, ID Food. Apart from that, the government is also opening opportunities for private parties who are interested in taking on the sugar factory construction project in the Papua area.
“The plan is for the area to be ID Food. Then we will invite the private sector to see who is interested. For the private sector, the conditions are simple, have money, build it. Someone has already registered,” said Amran.
Furthermore, Amran hopes that cooperation between the Indonesian and Brazilian governments can be implemented, so that the technology in the sugar factory will be more capable. Because, he said, Brazil is an expert in sugar production technology.
“Hopefully Brazil can, yesterday we asked Brazil for technology to help with sugar technology, he is an expert, to help Indonesia, and he is capable, he is capable that we will send experts to help our sugar factories,” he said.
The sugar factory that will be built later, continued Amran, will prioritize producing sugar, not ethanol.
“We used to stock up on sugar. When sugar (prices) were high, we didn’t make ethanol. (But) when sugar prices were low, we made ethanol so that the factory would always make a profit,” he said.
Amran is also optimistic that the plan to build a sugar factory in Papua can start operating within the next 2-3 years. “Hopefully soon,” he concluded.
[Gambas:Video CNBC]
(wur/wur)