Wilmar to build integrated sugar industry in Merauke.
Wilmar International Ltd has made available US$ 1.5 billion to
finance development of integrated sugar venture in the Merauke Food
Estate in Papua. President of PT Wilmar Nabati Indonesia, a subsidiary
of the Singapore-based commodity giant Hendri Saksti said the company
has secured the license to use 200,000 hectares of land in that area.
The land will be used for sugar plantation to be integrated with sugar
refinery. Hendri feasibility studies will still be conducted that will
take 1-2 years. Sugar plantations would be the priority in short term
development of the ambitious food and energy estate project in Merauke,
an official said. Self sufficiency in sugar would be one of the main
goals of the Merauke Industrial Food and Energy Estate (MIFEE)
development in 2010-2014, Agriculture Minister Suswono said. Wilmar
International has also announced it's would l acquire an Indonesian
sugar company PT Jawamanis Rafinasi this year. Jawamanis, which has a
double refined sugar factory in Ciwanda, Banten, is priced at an
estimated US$ 50 million, but the price could be higher as negotiation
is still underway, a Wilmar official said. PT Wilmar Nabati Indonesia is
negotiating with the owners of Jawamanis, Wilmar Nabati commissioner MP
Tumanggor said. The factory of Jawamanis has a milling capacity of 1,000
tons of sugarcane per day.