Indonesian Government plans to set up new sugar factory

Jakarta: Indonesia’s Minister of Agriculture, Andi Amran Sulaiman, has announced plans to develop a sugar factory in Merauke, Papua, reported Tempo.

The government has identified land suitable for sugarcane cultivation and has already begun discussions with the Ministry of Environment and Forestry regarding the project.

The decision to establish a sugar factory in Papua is driven by two key factors: the region’s favorable climate for sugarcane growth and the abundance of available land. Minister Amran emphasized the strategic importance of this project, stating, “This is a huge industry, so it’s strategic to establish it [in Papua].”

While the exact timeline for the project’s commencement remains unclear, Minister Amran has indicated that the initial development phase will focus on 200,000 hectares of land. The overall investment for the project is estimated to range between Rp2.5 trillion to Rp3 trillion, and the government plans to invite private investors to participate in the funding process.

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