The government plans to build sugar factories and sugar industrial estates in Papua in the near future. A number of investors will be invited to take part. This was revealed by Agriculture Minister Andi Amran Sulaiman after a meeting with Deputy SOE Minister Kartika Wirjoatmodjo. The sugar factory will later be constructed on an area of about 2 million hectares.
“But what was interesting was that he (Deputy Minister of SOEs) surprised me with his extraordinary idea, building in the Papua region. The plan is 1-2 million hectares, but for the time being 200 thousand ha will be used to build a sugar factory. God willing, our sugar will do well in the future,” he said at the Ministry of Agriculture Office, Jakarta, Tuesday (7/11/2023).
Minister Amran said that the target in the near future was for the plan to be implemented. Later, the sugar factory will be integrated as an industrial area, including land for sugarcane cultivation.
Reasons for Papua’s Selection
The Minister outlined the reasoning for choosing Papua as the location for constructing the sugar industrial area. First, the suitability of the climate for growing sugarcane. Second, vast enough land for development.
“The climate for agriculture is the first, the second is a large area of land. There are many considerations, this is a big industry. It makes great strategic sense if it is built in Papua, “he said.
He said, the investment value needed to build one sugar factory ranged from Rp 2.5-3 trillion. “If I were a sugarcane expert, 1 factory is Rp 2.5 trillion to Rp 3 trillion,” he said.
With the investment value, he targets the sugar factory being able to produce between 8,000-12,000 tonnes of sugarcane per day (TCD).
Inviting Investors
Furthermore, Minister Amran said he would invite investors to participate in developing the industrial area. However, the area will be controlled by ID Food.
“The plan is for the ID Food area. Then we will invite private companies who are interested to be verified. For private companies, the conditions are simple, if you have the money, you can build. One has already registered,” he said.
He also opened the possibility of investors from abroad, such as Brazil. Given that Brazil is known for its capability in developing the sugar industry.
“Hopefully Brazil is able, yesterday we asked Brazil for the technology, they have the expertise and ability to help Indonesia, and can send experts to help our sugar factory,” he explained.
Opportunities for Ethanol Production
Minister Amran also raised the possibility of this industrial area to produce bioethanol. This can be an option to supply the needs of environmentally friendly fuel mixtures. However, he will make sure that sugar production for domestic needs can be met first.
“We will first ensure sugar supply, because what does it mean to build an ethanol factory? While sugar prices are high, we won’t make ethanol. But that’s Brazil. When sugar prices are low, we will make ethanol so that factories are always profitable,” he concluded.
Inviting Brazil
Previously, Minister of Agriculture Andi Amran Sulaiman received a working visit from the Brazilian Ministry of Agriculture at the Ministry. On that occasion, Amran invited the Brazilian state to invest in the food sector. One of them is by supporting the Indonesian government’s plan to build 30 sugar factory units and expand sugarcane planting land.
“We requested the Brazilian government to facilitate the plan to build 30 units of sugar factories and sugarcane plantations in Indonesia in the form of investment. And this cooperation will be prepared in the form of a working group,” said Minister Amran, Monday (30/10/2023).
In addition to investment in sugar factories, the Minister said cooperation with Brazil also includes the development of livestock vaccines for Indonesia’s needs and also increased cooperation in the field of export-import. The Minister believes that Indonesia has a role for the development of global agriculture.
“I am sure that we have the same view which is to establish contacts between our joint working group in agriculture. The main priority is market access. Because in the future we want to build a sugar factory and a bigger plantation,” he said.
West Papua Now 