The Jakarta Post
The government is to provide incentives to agro industries that integrate their manufacturing activities, from planting to end products, a minister has said.
'We will support industries that are integrated, from planting to end products. The government will provide both fiscal and non-fiscal incentives,' said Industry Minister Saleh Husin on the sidelines of a visit to plantation firm PT Tunas Baru Lampung, a Sungai Budi Group member, in Way Lunik, Panjang, Bandar Lampung, on Saturday.
The minister said he was in Lampung to directly observe manufacturing processes at sugar company PT Sugar Labinta. Almost all sugar produced by the company, he said, was supplied to large food and beverage industries.
Saleh also visited food maker PT Great Giant Pineapple Corporation (GGPC) in Central Lampung.
'At GGPC, we saw directly the company's manufacturing processes, starting from opening pineapple farms to producing raw materials. The company's activities, both upstream and downstream, not only generate profits amounting to billions of rupiah, but also enhance the value of resulting derivative products. Integrated manufacturing processes like this offer wide job opportunities and boost the state's foreign exchange reserves,' said Saleh.
All similarly integrated industries would receive support from the government, the minister said, including support for business network expansion.
GGPC is one of the leading canned pineapple companies in the world. It supplies processed pineapples to many international retailers selling canned pineapple under a range of brands.
The export value of GGPC products amounts to around US$220 million per year. (ebf)(++++)
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