23 Oct 2016
The nine sugar factories that will be closed are Rejosari, Kanigoro, and Purwodadi sugar factories in Madiun, then Toelangan and Watoetoelis sugar factories in Sidoarjo, then Meritjan sugar factory in Kediri, and three sugar factories in Situbondo, i.e. Pandji sugar factory, Olean sugar factory, and Wringinanom sugar factory.
“So it is not true if the closure was done at once, it will still be carried out gradually,” said the President Director of PTPN XI, Dolly P Pulungan in Jember, East Java.
According to Dolly, the age of the factories that will be closed are averagely above 100 years old. “So averagely they are already old, but the closure could take three years, or even four years later, while we conduct the study,” he asserted.
The closed sugar factories, Dolly said, will not be just left alone, but their functions will be changed.
“For example in Situbondo Regency, there are three sugar factories that will be closed, so we will convert one factory into a fertilizer factory, and convert the other two into maintenance factories. If we have a workshop center, we will not have to cooperate with partners,” he asserted.
By changing the function of the sugar factories, it is hoped that there will be no mass rationalization of employees.
“They will still be employed, or we will cooperate with them as our partners. Those who are about to retire will still retire, so it is natural,” he said.
It was previously reported that the government through the Ministry of SOEs will close a number of sugar factories in East Java.
The reason is to regroup and increase efficiency of the SOEs. The sugar factories that will be closed are those under the management of PTPN IX, X, XI, and PT Rajawali Nusantara Indonesia (RNI).
| Writer | : Jember Contributor, Ahmad Winarno |
| Editor | : M Fajar Marta |
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