The Indonesian Government pledged to give full assistance to a South Korean company Park Energy Pte Ltd to build a sugar factory in Bener Meriah district, Aceh. This was reiterated by the Director General for Plantations, Achmad Mangga Barani, when visited by Sung Chur Park, the Chairman of Park Energy Pte Ltd, a South Korean affiliate of the New Continental Energy Group, Thursday, (11 / 3) in his office in Ragunan, Jakarta.
Achmad further explained that the development of the sugar industry is one of the Government’s main priorities in the next five years. There are five programs in those priorities which are self-sufficiency of rice, corn, meat, soybeans and sugar.
Indonesia is currently no longer import consumable sugar, however, sugar for food and beverage industry is still imported as many as 2.8 million tones per year. It is expected that the number will be greatly reduced within the next five years. And with the government assistance, by 2014, Indonesia could achieve a fully self-sufficiency in sugar, says Ahmad.
According to Sung Chur Park, his company is very serious in developing sugarcane plantation as well as its factory capacity of 20,000 TCD (Tones Cane per Day) in Bener Meriah, Aceh. The factory will need 37,000 hectares of sugarcane plantation to support the production rate. This land will be tilled in two stages with the first phase opening an area of 17,000 hectares and the remainder for the second stage. However, not the whole land will be owned by the company. It only needs 1000 Ha for factory construction, the rest will be use as a plasma plantation which will involve the local farmers who are used to plant sugar cane, says Sung.
The South Korean company will be providing fund of Rp 1.8 trillion (USD 180 million) for the investment. It is currently at the feasibility study stage, says Sung. If this current study proofs to be feasible, the factory construction could start really soon. The construction will take around 1.5 years, so hopefully in the year 2012, the factory will able to fully operate, said Sung.