Mas Cane Plantation Production 12.000 Ton

LAMONGAN, East Java - PT Kebun Tebu Mas will start operating a second sugar factory with a production capacity of 12,000 tons per day in May 2018.

The plant, located in Lamongan, East Java, has an investment of US $ 350 million. Currently, the plant is in the final stages of completion. Total production capacity up to 200,000 tons per year.

"This plant is our second factory, after Lampung, with an investment of US $ 350 million, we expect a return on investment within the next eight years," said Agus Susanto, Operations Director of PT Kebun Tebu Mas (KTM), Wednesday (10/12).

He said that with the establishment of a factory in Lamongan, East Java, at least KTM could cut the dependence of sugar imports this year by 2.8 million tons.

From a plant built two years ago, KTM will produce 30% of raw sugar, about 40% white crystal sugar, and 30% fine pharmaceutical sugar. The plant will rely on a supply of sugar cane from the surrounding areas such as Tuban, Lamongan, Bojonegoro, and Mojokerto.

According to Agus, the supply of sugar cane comes from a land area of ​​12,621.9 hectares (ha). Raw materials spiced from partnership of KTM farmers and independent farmers.

Of the total investment disbursed, continued Agus, mostly used to buy land and machinery. For machines, KTM imports from various countries, especially America, Japan, and Germany.

On the other hand, Agus said there are obstacles to increase production volume in Indonesia. Because the plant construction is always hampered the provision of land. On average, each plant requires a minimum of 10,000 ha. "But for land acquisition, it always continues."

Meanwhile, Minister of Industry Saleh Husin said that in recent years Indonesia has experienced crisis of sugar production, especially for food and beverage industry (Mamin). He concluded at least to cover the current volume of imports, still needed 10 factories with a capacity of 300,000 tons per year.

However, he added, to realize the construction of such a plant, it takes 100,000 ha of land. "Therefore we coordinate it with other ministries, such as agrarian and land, or forestry," he said.