Government Shuts Down Sugar Factories in East Java

`There are some PTPN sugar factories that are inefficient and old, and these are the ones that we will close,` said State-Owned Enterprises Minister Rini Soemarno at the Launching of the Farmer Card event in Situbondo Asembagus PG, East Java, today.
Minister of State-Owned Enterprises Rini Soemarno's statement is also a response to the various polemics surrounding the government's plan to close sugar factories in East Java. There are 10 sugar factories that are planned to be closed.
Although they will be closed, according to Rini, the government still guarantees that farmers will still be able to plant sugar cane to supply other sugar factories inEast Java. One of them, Asembagus PG owned by PTPN XI, will have its capacity increased from 4,000 tons per day to 6,000 tons per day.
`Once the capacity is increased, farmers will still be able to supply sugar cane and the factory will be able to keep milling. This is in order to be more efficient,` Rini said.
Including in East Java, especially in Situbondo, if the factory's capacity is increased, farmers will be able to increase production of sugar from 110 tons of sugar cane to 140 tons per hectare.
Rini even stated that if farmers' sugar cane production conditions increase, the possibility of building a new sugar factory is not ruled out.
`Sugar factories will be very profitable for farmers because they can continue to plant sugar cane and supply new sugar factories,` she said.
Rini even emphasized that in the new sugar factory, farmers will be given the opportunity to be shareholders so that there is continuity between the factory and the farmers. Because, she said, the cane factory should not end up not wanting to plant sugar cane. `That is why in the new factory, farmers will also be given the right to be shareholders so that they feel a sense of ownership,` she said.
She explained that the government's efforts are not intended to produce quality sugar because Indonesia's sugar prices are still lower than sugarinternational.

On that occasion, Rini Soemarno also launched the `Farmer Card` for sugar cane farmers in East Java. 31,000 Farmer Cards were distributed throughout East Java.
Farmer Cards are intended for farmers so that they can detect all of their needs, from fertilizer to loans requested from the bank. (OL-5)
http://www.mediaindonesia.com/news/read/77713/pemerintah-tetap-tutup-pabrik-gula-di-jatim/2016-11-16