Plantation Holding Closes Gradually 11 Sugar Factory

By : Hariyanto And Aldo Bella Putra | Wednesday, November 15 2017 - 17:00 IWST

Tahun 2017 Sejumlah Pabrik Gula di Jawa Timur Akan di Tutup

INDUSTRY.co.id - Jakarta - Holding Perkebunan Nusantara (PTPN III Persero) will close gradually 11 sugar factories that are considered unable to produce maximum and inefficient because they are old over 100 years.

"Gradual closing, three sugar factories in PTPN IX, three factories in PTPN X and five factories in PTPN XI," said Director of Holding Perkebunan Nusantara Dasuki Amsir in Jakarta, Tuesday (11/14/2017)

According to Dasuki, the closure of the sugar factory in the three locations is part of the company's business transformation program which is revitalizing a number of sugar factories and includes building a new factory.

"There are sugar factories that are closed, but some are revitalized and some are newly built," he said.

Meanwhile, Erwan Pelawi, Director of Plantation Management and Operations Management, said the plant closure will be phased in the next four years, or starting 2018.

"So, the closure is not necessarily done simultaneously, but adapted to the revitalization program that is rolling and the construction of a new plant," he said.

Erwan added that there are at least seven sugar mills to be revitalized, namely PG Mojo and PG Rendeng in Central Java, PG Jatiroto, PG Asem Bagus and PG Gempolkrep, in East Java.

Furthermore, in Lampung will revitalize PG Mayang Flower and PG Sweet Love while the new plant is under construction stage PG Comal capacity 6,000 TCD (ton of cane per day) which started full operation starting in 2020.

Even so, Pelawi ensures that the gradual closure of the sugar factory will not harm the sugar cane farmers around the plant and include plantation employees.

"The revitalization of sugar factories and the construction of new factories should be accompanied by increased capacity, so that the farmers' cane is still absorbed in large quantities," he said.

Until October 2017 total sales of Holding Perkebunan Nusantara recorded reached Rp28, 19 trillion. The contribution of sugar commodities reached 13 percent or Rp3.70 trillion.