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Government Preparing Sugar Factory Incentives

Friday, 18 April, 2008

TEMPO Interactive, Jakarta: The government is currently preparing incentives to revitalize sugar factories in order to be self-sufficient.

“The government has promised to build transportation infrastructure to and from sugar factories,” said Naswir Kawi, an expert from Indonesian Sugar Association (AGI) in Jakarta, yesterday (17/4).

The matter of providing incentives emerged during a meeting with Vice President Jusuf Kalla at the State Palace, Jakarta, yesterday.

However, the government has not yet announced the details of these incentives.

Naswir said that the incentives would attract producers to revitalizing sugar factories.

The government is encouraging more investment and production for sugar factories.

Currently, Indonesia has 58 sugar factories.

According to Naswir, the government is targeting production of sugar to be 3.3 million tons by 2010.

During 2007, sugar production amounted to 2.4 million tons, while total sugar consumption for household and industry was four million tons.