Makassar Tene to Build Rp1 Trillion Sugar Plant in Malang

Malang, East Java (Antara) - PT Makassar Tene will build a sugar factory with an investment of around Rp1 trillion in the regency of Malang, East Java, an official said. "All licenses including from the Capital Investment Coordinating Board (BKPM) have been in the hands of the investor. Implementation, therefore, could start soon," Malang Regent Rendra Kresna said here on Tuesday. The only requirement that has to be met is that the factory needs to open its own sugar plantation of around 30 hectares to guarantee raw material supply to feed the factory, Rendra said. The company is in the process of preparing the opening of the plantation, he said. The regent said the factory has to be built on a dry piece of land, adding it may not use farmland. In addition, the location must not be too close to two existing sugar plants in the regency including Pabrik Gula Krebet Baru at the sub-district of Bululawang and Pabrik Gula Kebon Agung at the sub-district of Pakisaji. The two sugar factories contribute 20 percent to the country's total sugar production . Rendra said the new factory may not use sugarcane from areas outside the the regency of Malang. He said the new factory will be built at the sub-district of Poncokusumo, which is known to be the production center of sugarcane. Currently , there are 42,000 hectares of sugar plantation in that area and there are 37,000 hectares of land not yet cultivated, he said. (*)