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Sabtu, 20 Juli 2024

Encouraging Food Self-Sufficiency, Deputy Minister of Investment States Government Will Provide Import Facilities in the Agricultural Sector

Jakarta, July 20, 2024 – Deputy Minister of Investment Yuliot announced the government's plan to provide import facilities for agricultural companies. Yuliot revealed this during the Coordination Meeting of the Task Force (Satgas) for Accelerating Food Self-Sufficiency in Sugar and Bioethanol in Merauke Regency, South Papua, held at the Ministry of Investment and Downstream Industry/BKPM office yesterday afternoon, Friday (19/07)

Yuliot stated that such policies are necessary to support food and energy security programs, such as the ongoing initiatives in Merauke involving integrated sugarcane plantations with sugar, bioethanol, and power plant industries. The exemption of import duties in the agricultural sector is primarily aimed at advancing mechanized agriculture for food and energy security.


“Currently, there are no import facilities for agricultural machinery and equipment. At present, these must go through the standard mechanism, requiring payment of import duties. However, given the future needs, especially for advancing food and energy security, the agricultural sector should be included among the sectors eligible for such facilities,” he explained.


In the same meeting, Yuliot provided updates on the progress of sugarcane plantation and sugar industry investments in Merauke. He noted that the development of Cluster 3, part of the 2 million-hectare sugarcane plantation in Merauke Regency, is progressing steadily.


“The development of the sugar industry in Cluster 3 is planned to include five factories integrated with bioethanol production. Infrastructure and funding have been prepared by businesses for training programs in Merauke to ensure local community involvement. Additionally, the Indonesian Sugar Plantation Research Center (P3GI) has been established, along with a partnership with Sugar Research Australia (SRA),” Yuliot elaborated.


Acknowledging the ongoing investment progress, Yuliot commended the companies for their commitment to realizing their plans.


“We have seen the facilities already in place. The standards set here are far superior to those in Australia itself. This shows the seriousness of the businesses involved,” he concluded.


The total planned investment for the integrated sugarcane plantations and sugar-bioethanol self-sufficiency project in Cluster 3, Merauke, South Papua, amounts to USD 5.62 billion or IDR 83.27 trillion. This investment includes IDR 29.2 trillion for mechanized sugarcane plantations, IDR 53.8 trillion for the construction of five sugar and bioethanol factories, IDR 120 billion for building a human resource training center, and IDR 150 billion annually for research and innovation facilities.


In accordance with Presidential Decree (Keppres) No. 15 of 2024 on the Task Force for Accelerating Food Self-Sufficiency in Sugar and Bioethanol in Merauke Regency, South Papua Province, issued on April 19, 2024, this task force was formed to expedite the facilitation of sugarcane commodity investments integrated with sugar, bioethanol, and biomass power plant industries in Merauke Regency, South Papua Province. The project spans five clusters, totaling over 2 million hectares. Cluster 1 and 2 cover approximately 1,000,000 hectares, Cluster 3 covers approximately 504,373 hectares, and Cluster 4 spans approximately 400,000 hectares. 


For further information, please contact:

R. Leidy Novanda

Senior Public Relations Officer

Communications and Information Services Bureau

Ministry of Investment and Downstream Industry/BKPM

E-mail: humas@bkpm.go.id

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