PT Permata Tene will build a new sugar mill in Probolinggo, East Java, with total investment of between Rp 1.5-2 trillion.
Permata Tene President Director, Andre Vincent Wenas was quoted by Kontan on Saturday as saying that the new mill will have a production capacity of 8,000 tons of cane per day.
He added that the construction of the new mill, to be located on a 50-60 ha plot of land, will take about two years to complete. He said that supply of sugarcane raw material will rely on the 17,000 ha of sugarcane plantation run by local farmers.
Permata Tene is a joint venture between PT Makassar Tene, PT Permata Dunia Sukses Utama, and PT Sumatera Tonggi.
Andre said that Probolinggo was selected as the location of the new sugar mill because the region is considered to have the best soil structure for sugarcane development in the country. “Historically, since the Dutch era, Probolinggo has been known as the center of sugarcane plantation,” he said.
Meanwhile, Chairman of the Indonesian Sugarcane Farmers Association (Aptri) Soemitro Samadikoen expected the management of the new sugar mill will think ways on how to improve the sugarcane extraction rate, which currently stands at an average of less than 8 percent, compared to the 14 percent average in Thailand. (rei)