Governor Welcomes Plans To Build Sugar Factories By Indian Investor

Ambon, Maluku, Sept 19 (Antara) - Maluku Governor Said Assagaff said he welcomed plan by an Indian investor to build sugar factories in the regency of Maluku Tenggara Barat.

The investor Madhucon Sugar and Power Industries Ltd plans to build the factories in Saumlaki, the municipal town of the regency of Maluku Tenggara Barat.

"I would be pleased to facilitate the plan including in land procurement and licensing as the project would contribute to area development and prosperity of the local people," the governor said here on Monday.

The regent of Maluku Tenggara Barat, Bitzael Temmar, had offered 30,000 hectares of land needed by the investor to grow sugarcane to feed the sugar plants.

Around 20,000 hectares of the land are production forest that could be converted and 10,000 hectares are lands belonging to local people.

"The plan is that the nucleus company will have 20,000 hectares and plasma farms 10,000 hectares," the governor said.

He said according to surveys by experts from the Agriculture Ministry , Maluku Tenggara Barat and the Aru islands are suitable for large scale sugarcane plantations.

The Ministry of Forestry and Environment already gave license to carry out surveys on the Aru Islands.

"It is , therefore, a good opportunity to open large sugarcane plantation in Maluku Tenggara Barat, which is located strategically with the Trans Yamdena highway and plan to build a bridge between Wai Arafura and neighboring island of Larat this year," the governor said.

He pointed to the empty lands right and left of the 154 kilometers road between Saumlaki and Siwahan, at the end of the island of Yamdena and across the sea to the island of Larat.

The lands could be used for sugar plantations, he said.

If any investor used the lands for sugar plantations, tens of thousands of jobs would be open for the local people, he said.

"We will solve unemployment and poverty problems in that area," he added.

In addition, sugar plantations would encourage the opening of large scale livestock breeding farms, he said. .

"Maluku is one of 10 provinces to be developed as sugarcane plantation centers in the country in 2016 as planned by the Agriculture Ministry," he said.

Earlier, President Director of Madhucon Sugar and Power Industries Ltd, Krishnaiah, said the company hoped to invest around US$150 million in the province of Maluku.

The company wanted to build sugar and ethanol factories and 25-megawatt power plants in Saumlaki, in the regency of Maluku Tenggara Barat.

Krishnaiah said his company has long experience in the production of sugar and ethanol integrated with power generating plant.

In Saumlaki, the company wanted to build factories in two phases each complete with a 25-MW power plant, he said.

He said his company plans to start work to build the factory immediately after it has secured the necessary licenses.

He said Madhucon hopes that there would be no problem in obtaining the licenses both in the center and region.

He said implementation of the project from land preparation to sugarcane planting and factory construction would take 36 months to completion.

MOst of the sugar production would be eastern Indonesian regions including Maluku, North Sulawesi and Papua, and the excess in electricity production would be sold to state electricity company PT. PLN.

"We hope to sell power to PLN as the factory would need only 5 megawatts," Krishnaiah said.