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Jakarta Post

State firms eye 28.6% increase in output

The government revealed Friday the production output of state-owned sugar producers would increase by 28

Nani Afrida (The Jakarta Post)
Jakarta
Sat, June 5, 2010 Published on Jun. 5, 2010 Published on 2010-06-05T12:00:28+07:00

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T

he government revealed Friday the production output of state-owned sugar producers would increase by 28.6 percent this year compared to last. Imports, however, are likely to continue.

“This year we expect to produce around 1.8 million tons of sugar from 1.4 million tons a year earlier,” Deputy Minister for Agro-Industry, Forestry, Pulp, Printing and Publication at the State-Owned Enterprises Ministry, Agus Pakpahan, said recently in Jakarta.

The combined output of both state and private firms will reach 2.72 million tons of sugar in 2010, which is lower than its initial target of 2.99 million tons due to the impact of the prolonged rainy season on sugar content in sugarcane. Last year, output reached 2.62 million tons.

Agus said the milling season started in May, and seven state plantation companies already had targets for their sugar production.

There are seven state plantation companies that produce sugar; PT Perkebunan Nusantara (PTPN) II, PTPN VII, PTPN IX, PTPN X, PTPN XI, PTPN XVI, and PT Rajawali Nusantara Indonesia (RNI). State firms control more than half of the nation’s sugar output.

According to Agus the biggest portion of sugar production this year will be contributed by three companies; PTPN X (496,030 tons), PTPN XI (469,354 tons) and RNI (424,126 tons), while PTPN VII and PTPN IX produces 174,986 tons and 180,855 tons respectively.

“The production will be higher than targeted if those companies operate all existing sugar mills.

However, the uncertain season condition has caused those mills to delay their milling process,” Agus said.

PTPN X president director Tarsisius Sutaryanto confirmed the prolonged rainy season would seriously affect production.

 “There are four mills that are owned by PTPN X, which have delayed their milling schedule,” he said.
Indonesia currently has 61 sugar mills, 51 of which are owned by the state and 10 by private companies.

However, Agus declined to comment whether the increasing sugar production would decrease imported sugar to the country. Last month, deputy to coordinating economic minister Diah Maulida, said state firms would import up to 135,000 tons of sugar until the end of this year.

Indonesia needs about 4.8 million tons a year for household and industry consumption.

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