Jakarta, Dec 5 (Antara) - Indonesia, which imports about 50 percent of
the sugar the nation requires, is once again determined to increase its
sugar production and achieve self-sufficiency in sugar supplies.
The previous government, under former president Susilo Bambang
Yudhoyono, created a road map for sugar development to increase the
country's sugar production to about 5.7 million tons by 2014, thus
achieving self-sufficiency.
However, over the past several years, the country has repeatedly failed
to increase production, meeting about 50 percent or less of its annual
need of over 5 million tons, although there are some 60 sugar mills in
the country.
In 2011, for example, the government was forced to lower its sugar
production target from 2.7 million tons to 2.57 million tons. However,
by the end of 2011 farmers produced 2.26 million tons, though this was
still less than the annual need of some 5 million tons.
And in 2012, too, Indonesia sharply cut its production target from 4.4
million tons to 2.6 million tons, while in 2013, production dropped to
2.5 million tons from the target set at 2.8 tons.
The target for 2014 was set at 3.1 million tons. Now, this target has
been scaled down from the previous target, as set in the road map at 5.7
million tons by the Yudhoyono government.
Further, President Joko Widodo's new government has declared it will
work to lead the country into a nation of self-sufficiency in food,
including in sugar.
According to State-owned Enterprises (SOE) Minister Rini Soemarno,
efforts to achieve self-sufficiency in sugar production have to be made
because sugar is one of the several food products President Joko
Widodo's government has targeted for Indonesia to be self-sufficient in
the next three to five years.
Other food products targeted for self-sufficiency include rice, soybean, maize, and meat.
The minister admitted that the nation's sugar mills were primarily
old. Although the number of sugar mills is relatively large, with about
60 factories, yet they are not operating at full capacity because their
equipment is outdated.
"Revitalizing them will need investment. We can make this investment
only if the goals and stages of progress of the revitalization plan are
clear," the minister stated during her visit to Gempolkrep Sugar Mill,
which belongs to state-owned plantation firm PT Perkebuanan Nusantara X
(PTPN X) in Mojokerto, East Java, on Tuesday.
Minister Rini Soemarno noted that state sugar companies should
diversify their businesses to achieve sugar self-sufficiency and improve
the people's welfare.
"State-owned sugar companies should not only focus on producing sugar,
but also on producing other by-products of cane sugar, such as
bio-ethanol, fertilizers, and bagasse-based electricity," the minister
stated.
In the meantime, Vice President Jusuf Kalla said that in order to
increase sugar production and achieve sugar self-sufficiency, the
government will build ten new sugar factories.
"The plan to build 10 new factories, including one in Sragen, is
expected to help the country achieve its self sufficiency target," Vice
President Jusuf Kalla said when visiting the Mojo Sugar Factory of state
plantation company PT Perkebunan Nusantara IX, in Sragen, Central Java
on Friday.
Kalla noted that most of the sugar refineries are no longer efficient,
as their equipment is old and outdated. Therefore, new and more
efficient factories with higher productivity are needed to reduce
production costs, he said.
He also said operators of sugar refineries should seek to increase the
sucrose content of their sugarcane to improve the quality of the sugar
product.
"There is no alternative, but to build new sugar mills," the Vice-President stated.
During his visit to the location, the Vice-President received reports
regarding declines in production volume and in the farmers¿ reference
price for sugar (HPP). However, according to Kalla, raising prices will
only increase smuggling activities.
"There are two good solutions. The sucrose content of sugarcane and
productivity of plantations must be increased. We have to have 'Program
110', which means 100 ton production per hectare and 10 percent sucrose
content. We have to meet this," he added.
He stressed that the program can be realized by building new sugar
mills. It will also ensure farmers' standard of living and sugar
self-sufficiency.
"Self-sufficiency will reduce imports and increase farmers' income," he added.
Because the country has only been able to produce some 50 percent of
its domestic needs for sugar, the government has to allow the
importation of the remaining amounts, particularly raw sugar, which is
refined by industry at home and distributed to food and beverage
industries.
However, factories that import raw sugar for refining at home may not
distribute their refined sugar to the consumer market, but to food and
beverage industries.
In 2014, for example, the government allowed the importation of 3.05
million tons of sugar, but it then cut its import quota to 2.8 million
because some distributors had already released their sugar to the
consumer market.
The reduction in imports was a penalty for the refined sugar factories
because of the illegal sales of their production in the open market.
"There are already four factories that have been forced to stop
operations because of shortages in supplies of feedstock," chairman of
the Association of Refined Sugar Producers (AGRI), Wisnu Hendraningrat,
said recently. "As a result, the factories could not fulfill their
contracts with food and beverage manufacturing companies," Wisnu added.
Wisnu added that it is feared that more factories will also stop
operations soon, adding that currently they are slowing production. The
situation seen at four companies could have a negative impact on the
food and beverage industry, he said.
AGRI's members include 11 factories producing refined sugar with a
production capacity of 3.6 million tons need by the domestic industry.
In the first half of 2014, imports of raw sugar already totaled 2.1
million tons. Plans call for importing 635,000 tons in the second half
of the year.***2***
(T.A014/INE/H-YH)
(H-YH)
(T.A014/A/BESSR/A/Yosep) 05-12-2014 20:49:1 |
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