Monday, 2 November 2015


In pursuit of national self reliance in sugar, farmer were given the convenience in obtaining production facilities. This year fertilizer was a big problem to farmers. Farmers were only allowed to buy subsidized fertilizers for not more than 2 ha of land. Farmers had to seek for non-subsidized fertilizers which was hard to get at the market. Arum Sabil, Chairman of APTRI told Business News.

Control of subsidized fertilizers by the Police and the army had criminalized farmers; there were even farmers who were arrested by the Police because of being charged of abusing subsidized fertilizers. The main problem was Government’s program which allowed subsidy for fertilizers way below farmer’s need. The total need for fertilizers was 41 million tons. The proposed allocation was 15 million tons were finally stipulated at 9 million tons.

This year it was difficult for farmers to obtain Food and Energy Resiliency Credit (KKPE) for sugarcane growers. Normally it was easy for sugarcane growers to get KKPE. In the present condition it would be hard for farmers to compete at AEC. The standard Farmer’s Selling Price (HPP) of Rp8900/kg was based on the assumption that farmers used subsidized fertilizers but in reality they used non subsidized fertilizers.

Revitalization of sugarcane was exercised by way of using new premium variety, rescheduling of planting and cut-and-carry Management, which was important for increasing yields.

In first planting on technical irrigation land sugarcane growers would lose if sugarcane production was only 90 tons/ha with yield of 7% because production cost would come to Rp.11,881/kg, but if production output was 100tons.ha with yield of 12%production cost would come to Rp.6,387/kg and farmers would gain.

If ratoon of second round on the same condition of land and sugarcane production was 80tons/ha with yield 7% production cost would be Rp.11.299/kg and farmers would lose but if sugarcane production was 90 tons with yield of 12% production cost would be Rp.6.024/kg farmers would gain.

Beside increasing productivity it would be necessary to expand sugarcane plantation area. Today total expanded to 750,000ha. Sugarcane production with premium variety was increased from 75 tons/ha to 100 tons/ha. Today’s yield which was 7.5% on the average would be increased to 10%.

On the factory side, machinery would be revitalized with carbonating and modern and automatic machines. Of the 63 sugar mills today, those which were 100 years – 184 years old were in 40 sugar mills, those which were 50-59 were in 3 sugar mills and under 25 years were in 5 sugar mills.

Machines with capacity below 2000 TCD were in 14 sugar mills, those of 2000 – 4000 TCD in 29 sugar mills, 4000-6000 TCD in 5 sugar mills, 6000 – 8000 TCD in 9 sugar mills, 8,000 – 10,000 TCD in 2 sugar mills, and above 10,000 TCD in 3 sugar mills. By productivity, sugarcane with 30 – 40 tons/ha were in 3 sugar mills, 40 – 50 tons/ha were in 3 sugar mills, 50 – 60 tons/ha were in 17 sugar mills, 60-70 tons/ha were in 12 sugar mills, 70-80 tons/ha were in 14 sugar mills, 80 – 90 tons/ha were in 4 sugar mills.

Based on productivity per ha between 1-3tons.ha was in 1 sugar mill, 3-4 tons/ha in 19 sugar mills, 4-5 tons ha in 14 SM. 

Sugar producing companies numbered 18 with 63 factories. Processing capacity was 245,900 TCD so on the average 3,900 TCD. Raw materials were obtained from own plantation and farmer’s plantation.

Working days for processing was on the average 160 days/year. Plantation areas in 2014:477,122 ha consisting of farmer’s Sugarcane 273,332 ha and company’s sugarcane 203.790 ha. Annual production potential came to 2.5 million tons of sugar/year.

Number of workers on farm was 1,326,250 family heads and off farm 28,350 people not including group workers Age of existing factories 2-184 years and climate influence on production was great.

New investment would need capital of Rp.1.5 to Rp.2 trillion on farm or off farm for capacity of 10,000 TCD or 120,000 ton of sugar/year. To start production after 4-5 years and attain BEP of 8 – 10 years after production. The land needed for plantations of 25,000 – 30,000 ha for factory with capacity of 10,000 TCD.

In the Revitalization process, sugar mill capacity was increased from 245 TCD to become 500,000 TCD. “If revitalization of sugar mills with focus on increasing capacity and yield was at least 10%and building of new sugar factories were actually realized with areal expansion plus increase of productivity and yield Indonesia could produce 7,5 tons of sugar. If the position was achieved Indonesia would be more than just reliant in sugar but would become an exporter of sugar” Arum Sail said. (SS)

Business News - July 10, 2015

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