Gov’t to Allocate Land in Papua to Achieve Sugar Self-Sufficiency

Minister of Agriculture Andi Amran Sulaiman delivers a press statement at the Merdeka Palace, Jakarta, Tuesday (12/12). (Photo by: PR of Cabinet Secretariat/Rahmat)

In a bid to boost sugar production and achieve national self-sufficiency, the Government is set to allocate one million hectares of land in Papua province.

“We discussed the issues facing the sugar industry and laid out plans to prepare one million hectares of land in Papua,” Minister of Agriculture Andi Amran Sulaiman said in a press statement after attending a limited meeting chaired by President Joko “Jokowi” Widodo at the Merdeka Palace, Jakarta, Tuesday (12/12).

According to the Minister, the land will be available for both domestic and international investors keen on establishing a sugar factory in the country.

The Minister also said that several investors have already started planting sugar cane seeds in the province.

“Several domestic and foreign investors have expressed interest in establishing a sugar factory in Papua. That way, insyaAllah, we can achieve self-sufficiency in sugar production in the future,” he said, adding that achieving self-sufficiency in sugar production requires the establishment of 20 to 30 sugar factories, each with a capacity of 12,000 tons of sugarcane per day (TCD).

Drawing on the experience of constructing 10 sugar factories between 2014 and 2019 under President Jokowi’s direction, the Minister pointed out that building a factory with a capacity of 12,000 TCD would need a budget around Rp2.5 trillion to Rp3.5 trillion.

“The cost for one sugar factory unit with a capacity of around 12,000 TCD is estimated to be between Rp2.5 trillion and Rp3 trillion,” he said, adding that sugar cane commodities can also be utilized for bioethanol production once national sugar production fulfills domestic needs.

“Once we achieve self-sufficiency in sugar and even consider exports, there is potential to produce ethanol, possibly in collaboration with [state-owned oil and gas company] Pertamina,” he remarked. (FID/UN) (RIF/EP)