Ministry pushes sugar factories revitalization accelerated

BUMN sugar production is targeted to reach 1,19 million tons.

REPUBLIKA.CO.ID, JAKARTA — Ministry of State-Owned Enterprises (BUMN) encouraged revitalisation of a number of sugar mills managed by PT Perkebunan Nusantara (PTPN) and PT Rajawali Nusantara Indonesia (RNI). Revitalization needed to increase production and meet domestic sugar needs.

According to Deputy of Agro and Pharmaceutical Industry Business at SOEs Ministry, Wahyu Kuncoro, revitalization aimed to increase efficiency and milling capacity as well as improve the quality of sugar and downstream products. He said it is important to support food security and national sugar self-sufficiency program.

“This will cut State-Owned Enterprises sugar production cost, so sugar can be sold at more affordable price for people, but without overriding efforts to improve the welfare of farmers, partners, employees and profits of state companies," said Wahyu in a written statement on Friday (Nov 30).

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Wahyu explained State-Owned Enterprises sugar production reached 1,16 million tons, consisting of 856 thousand tons of PTPN Group sugar production, 271 thousand tons of PT RNI and 35.5 thousand tons of PT Gendhis Multi Manis (GMM). It was harvested from sugar cane plantations covering 224 thousand hectares, consisting of 172 thousand hectares of sugarcane area PTPN Group, 46,2 thousand hectares of RNI area and 5,5 thousand hectares of GMM.

“State-Owned Enterprises sugar production this year is predicted as many as 1,19 million tons, while last year only 1,16 million tons,” Wahyu added.

According to him, in the next fiver years, State-Owned Enterprises sugar production will increase to 3,2 millions. A number of PTPN Group sugar mills are being transformed into production processes from sulfitation to Remelt Carbonation Deficiency. In addition, the capacity of five factories has also been increased from the original 20 thousand tons of sugar cane per day (TCD) to 32 thousand TCD. There is an increase in capacity of 12 thousand tons.

In order to improve capital and maximize business potential, PTPN Group is developing downstream sugar cane products into Bio-ethanol. Starting in 2019 PTPN X will convert fuel grade Bio-ethanol into extra neutral alcohol (ENA) or industrial grade Bio-ethanol with a capacity of 100 Kiloliters Per Day (KLPD) and bagasse fermentation or fermented bagasse pellets which can be used as fuel, amounting to 3 million tons per day.

PTPN XI will revitalize the technical ethanol plant with a capacity of 15 KLPD to become industrial grade Bio-ethanol with a capacity of 100 Kiloliters per day. As one of State-Owned Enterprises, PTPN also has a role in partnering with sugarcane farmers, as an effort to improve the quality of life of farmers.

PTPN Executive Vice President Holding Aris Toharisman said that the pattern of improvement in partnership relations was continued by the company, both in the provision of production and harvest facilities and funding support through the partnership and community development program (PKBL). He said PTPN and RNI have also synergized with state logistics firm Perum Bulog.

Aris explained, in 2016-2019 period, the investment in state-owned sugar factories reached Rp 4,7 trillion. Some factories can produce premium quality sugars that meet food and beverage industry standards.

"The higher the quality and the higher the efficiency of the plant, the greater the sugarcane yield. It shows that the performance of the sugar factory of State-Owned Enterprises is relatively good, even compared to other sugar mills which are relatively new," said Aris.

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