The Rajawali Group, one of Indonesia’s major business groups, will soon realized its planned sugar industry development in the remote area of Merauke, Papua, as all the necessary permits have been issued by the government.
Rajawali through its subsidiary PT Cendrawasih Jaya Mandiri plans to develop an integrated sugar industry on a 25,000 ha acreage in Merauke’s Kurik and Malind districts.
Heru Piryono, Cendrawasih Jaya Mandiri Director, was quoted by Kontan on Tuesday as saying that the company will start next year the sugarcane planting activity and the construction of a planned 8 ton per day capacity sugar mill.
Heru said that the company has already developed seven varieties of sugar seedlings in cooperation with the Indonesian Sugarcane Plantation Research Center for the cane plantation development. In addition, the company will also import extra seedlings from Australia.
Rajawali has allocated about Rp 3 trillion worth of investment to realize the plan, about Rp 1.7-Rp 1.9 trillion of which to be used to finance the planned sugar mill along with its facilities.
Rajawali is eying to sell its sugar products in the eastern part of Indonesia, which has been suffering from sugar deficit every year due to lack of production. (rei)