The high import of sugar has made the domestic sugar industry become sluggish. This is because the price of imported sugar is cheaper than local sugar.
PT Perkebunan Nusantara XII (Persero) is currently building a modern sugar factory in Banyuwangi with a capacity of 6,000 tons of sugar cane per day (tth) with the aim of reducing sugar importation.
However, the sugar factory called Glenmore will not be able to significantly reduce the amount of sugar imports reaching 2 million tth.
“It’s still not how, our imports are still high. But this part of our efforts, if you do not import Indonesia needs at least 10 more sugar factories whose capacity is the same as Glenmore, “said Director of PTPN XII Irwan Basri at the Ministry of SOEs, Jakarta, Wednesday (27/08/2014).
The Glenmore sugar factory will produce high quality sugar as it is claimed to be the most modern factory in Indonesia.
Not only that, the Cost of Goods Sold (HPP) that will be produced by the factory can be priced at Rp 5500 per kilogram (kg), where the price is far below the price of refined sugar.
“Refined sugar is landing in Indonesia costs Rp 7,500 per kg, so even then we will not be afraid of losing competitiveness with refining,” he said.
As is known, Glenmore integrated sugar factory was initially initiated consortium PTPN XII, PTPN III, PTPN XI. This consortium was established based on the Letter of SOE Minister.