Among the products that Indonesia is wealthy of, is sugar. There are sixty-seven Indonesia sugar plants that have a total of one-hundred-eighty-one-thousand metric MTs capacity for daily cane processing, and a standard sugar plant size of about three-thousand MT per day, which processes twenty-six million MT of sugar cane every year. The Indonesia sugar industry contributes fairly to the country's economy, including another significant byproduct, molasses.
At present, molasses has been considered as an important byproduct of sugar produced by Indonesia sugar industries, as it is widely utilized as an animal feed add-on, and as a substrate for processes of fermentation in producing vitamins, alcohols, monosodium glutamate or MSG, and various other products; what's more, approximately one-third of these molasses is also exported by Indonesia.
The fact that sugar is considered a commodity with social, policy, and economic dimensions, makes it a significant contributing factor to the country's economic growth; not to mention the jobs sugar plants provide to over 1.3 million Indonesian people. It is also a low-cost calorie source for the poor, and a very basic need that 'sugar price' gives an important impact on inflation, an indicator of macroeconomics that is cautiously watched by its government.
However, a declining performance has been seen in Indonesia sugar industry attributed to external and internal factors, such as government policy failures that respond to the industries international and domestic markets, as well as industry inefficiencies. Realizing the depressing condition of the Indonesia sugar industry at the start of 2000 has prompted its government too revise sugar policy through controlling imports, and limiting both importer numbers and import volume.
The policies made by the government showed an improvement in the sugar industry performance, indicated by a growth in production of more than ten percent in the previous years of 2205 and 2005; the promising results of these policies have made the government target a self-sufficient Indonesia sugar industry by 2009.
If the current policies of Indonesian government is maintained and the price of sugar jumps to over $300 per ton, the growth rate of the sugar industry in Indonesia is anticipated to double. Additionally, with more synergic and substantial efforts, it will not be impossible for Indonesia to become one of the sugar exporting countries in the near future.
For short, through the application of better practices of cultivating, harvesting, and transporting sugar, the inefficiencies will diminish and a higher capacity of productivity will be achieved.
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