Indonesia pledges to `feed the world'

Erwida Maulia, The Jakarta Post, Jakarta | Sat, 01/30/2010 12:54 PM

Indonesia has reiterated its commitment to becoming a major global food producer by boosting the production of 15 key food commodities.

Fransiscus Wilerang, head of the Permanent Committee for Food Resilience at the Indonesian Chamber of Commerce and Industry (Kadin), said Friday that the successful implementation of the program could contribute at least US$101.5 billion to the country's revenues for the 2010-2014 period.

The 15 food commodities, Fransiscus said, included four "strategic" ones - rice, corn, sugar and soybeans - and six "key" commodities, consisting of palm oil, tea, coffee, cocoa, tuna and shrimp.

Other categories are "nutritious" (beef and poultry), and "local popular" products (mangos, bananas and oranges).

The 10 strategic and key commodities are part of the government's 2009-2014 road map for food development.

The plan aims to, among others, allow domestic crude palm oil (CPO) producers to expand their plantations from the total 7.9 million hectares as of the end of 2009, to 9.7 million hectares by 2015.

The expansion is expected to help boost CPO production to 36.6 million tons.

Production of another key crop, coffee, is expected to reach 737,000 tons this year, or 142 percent more than domestic consumption.

Under the road map, the 433,000-ton surplus will be exported.

Coffee exports are expected to increase by 4.69 percent annually until 2020, when 636,000 tons of the total production of 973,000 tons is expected to be exported.

"Considering Indonesia's potential to achieve food self-sufficiency, we have to see the global food crisis as an opportunity and participate in efforts to supply food for the world," Fransiscus told hundreds of participants at the "Feed the World" seminar, organized by Kadin.

"We've agreed to develop the idea into a concept of food self-sufficiency and supply food for the world, or *Feed the World'."

At a press conference after the seminar, Kadin deputy chairman Franky Widjaja said the revenue from the 15 commodities could amount to $101.5 billion.

"If we manage to promote this at the downstream level in the next five years, this could more than just a dream," he said.

President Susilo Bambang Yudhoyono, who officiated the seminar and subsequent expo, said it was important for Indonesia to help address the world's food security issues, pointing out the consequences for not doing so could include the incitement of conflicts, as with water or energy issues.

He said to help achieve the "Feed the World" goal, the government would continue the first wave of its farming, plantation and fishery revitalization programs, lasting from 2004 to 2009, with the second phase set for the next five years.

Yudhoyono added that while Indonesia needed to maintain self-sufficiency in rice and corn production, it needed to achieve the same self-sufficiency in sugar production while reducing its dependence on imported soybeans.

He also reminded businesses not to neglect demand from the domestic market for the sake of more lucrative markets overseas.

"Why feed the world if we still have problems with food supplies and price instability at home," he said.

"The program **Feed the World'* should be understood as *Feed Indonesia, then feed the world'."

Investment Coordinating Board chairman Gita Wirjawan told The Jakarta Post on Thursday that the government would categorize main staple foods such as rice and corn among the types of commodities that foreign interests would be restricted from investing in.

"These commodities are key to our national security, so it is within our interests to protect them," he said.

Indonesia to import 110,000 tons of sugar

Jakarta (ANTARA News) - The government has allowed the importation of 110,000 tons of sugar this year to augment stocks to anticipate the belated arrival of milling season which normally begins in May or June.

"The current stocks are enough for five months of consumption during the non-milling season. But we will have buffer stocks that will be fulfilled by Bulog and PT PPI. We will allow importation of some 110,000 tons for two weeks of consumption. The import will be made before the beginning of this year`s milling season," Trade Minister Mari Elka Pangestu said here Friday.

The State Logistics Agency (Bulog) would import 20,000 tons of sugar, while the remaining 90,000 tons would be imported by state-owned trading company PT Perusahaan Perdagangan Indonesia (PPI), she said.

Diah Maulida, the director general of foreign trade at the Trade Ministry, said the imported sugar would be allocated to meet demand from regions outside Java.

The imported sugar is expected to be delivered between February 1 and April 30.

W. Java farmers demand better sugar mills

Nana Rukmana, The Jakarta Post, Cirebon

West Java sugarcane farmers have asked the government to fulfill its promise to revamp sugar mills in the province and to increase sugarcane farmlands to meet the country's domestic needs.

Anwar Amali, chairman of West Java's Indonesian Sugarcane Farmers Association, said three of five sugar mills in West Java were already more than one hundred years old and in need of repair.

"The three sugar mills, which need to be urgently revitalized, are the ones in Karang Suwung, Tersana Baru and Sindang Laut," Anwar said.

The sugarcane farmers first asked the government five years ago to assist with improving their mills, but received no response.

Anwar said their welfare depended on the operational feasibility of the mills.

The association represents 13,157 sugarcane farmers in West Java who work on 12,372 hectares of farmlands in Cirebon, Majalengka, Kuningan, Indramayu, Subang and Sumedang.

Anwar said Vice President Muhammad Jusuf Kalla visited Jatitujuh sugar mill in Majalengka in June to tell sugarcane farmers the government would revamp 52 sugar mills throughout Indonesia.

The government said it had provided Rp 5 trillion to finance the revitalization program that would last for around three years.

Anwar said the country could achieve self-sufficiency in sugar production by 2009 if the government fulfilled its promise.

"But to fulfill the national sugar self-sufficiency the government should (also) expand the farmlands as soon as possible."

The national demand for sugar is estimated at 3.3 million tons per annum, comprising 2.5 million tons for human consumption and 800,000 tons for industrial use, Anwar said.

But Indonesia uses 350,000 hectares of sugarcane farmland to support a national production of 2.3 million tons of sugar, so the country must import the balance.

Anwar said the country needed to expand sugarcane farmlands to 750,000 hectares and the country would need to create some 400,000 hectares of new sugarcane farmland.

Green science: Biofuels and the Future of the environment

Arnawa Widagda, Contributor The Jakarta Post , Jakarta

The rising prices of petroleum fuel have pushed alternative fuels such as biodiesel and bioethanol into the spotlight. Despite their rising popularity, many seem to misunderstood what biofuel is.

Unlike traditional fossil-based fuels such as diesel and gasoline, biofuels are environmentally friendly, renewable fuel. As the name implies, biofuels are extracted from plants -- biodiesel is typically made from new or used vegetable oils and animal fats, while ethanol is made from any plant life rich in sugar, like corn and sugar cane.

Currently available biofuel offerings on the market use a blend of biodiesel or ethanol with traditional petroleum fuel. For example, biodiesel is typically made up of 20 percent biofuel and 80 percent petroleum, called B20 fuel. Bioethanol blends are made with 5 to 10 percent ethanol.

For its Bio Pertamax, Pertamina uses 5 percent of ethanol. In this sense, biofuels can be regarded as additives rather than replacements for fossil-based fuels such as petroleum.

However, much higher blends of biofuel exist that can be considered "real" alternatives for petroleum.

Neat biodiesel, or B100, is made entirely from biodiesel, while ethanol-based biofuels such as E85 and E95 use 85 percent and 95 percent ethanol, respectively.

Such high-level blends will certainly reduce significantly the world's dependence on fossil-based fuels; however, they are not without drawbacks.

Ethanol is much more corrosive and burns at lower combustion temperatures than traditional gasoline. The corrosive nature of ethanol and biodiesel means cars -- or engines in general -- must use additional protection to prevent damage to fuel-related systems if they use high biofuel blends.

With lower blends (10 percent for ethanol and 20 percent for biodiesel), engines and fuel systems do not need the additional protection. Due to its lower combustion temperature, gasoline engines still need a 15 percent blend of gasoline; otherwise, the engines will fail on a cold start.

However, diesel engines are much better suited for low-burn temperature fuel, making E95 a better choice for diesel engines.

It is also true that biofuel generally produces less energy than petroleum, meaning slightly lower mileage for users. This is because traditional gasoline and diesel engines are built without biofuels in mind.

Biodiesels have more oxygen content than traditional diesel, while ethanol-based biofuels have more octane but a lower combustion temperature. Biofuel-aware engines such as flexible fuel vehicle (FFV) engines in newer cars should have no problems with E85 for gasoline engines or in the case of biodiesel, neat biodiesel for diesel engines.

These two characteristics of biofuels actually have a positive effect -- a more efficient combustion, which means less pollution. So the use of biofuels should help the current energy crisis and even protect the environment.

Various studies show that neat biodiesel reduces carbon dioxide emissions by more than 75 percent compared to petroleum diesel. Using B20 biodiesel reduces carbon dioxide emissions by 15 percent.

Tests at the National Center for Vehicle Emissions Control and Safety at Colorado State University document a 25 to 30 percent reduction in carbon monoxide emissions when automobiles burn a 10 percent blend of ethanol.

Let's not forget the economic impact on farms and the national workforce.

The different characteristics of biofuels do present new challenges for distribution and storage.

Such facilities must be vigilant about water produced either from condensation due to cold weather or seepage. Rust, microbes and other deposits sticking to the insides of a fuel tank or container detach more easily with biofuel.

A high enough buildup will lead to blockage in fuel systems and failed starts in engines. Of course, this doesn't just affect cars and engines -- it also means fuel pumps and gas stations must invest in new pumps, storage tanks and other equipment.

In fact, Indonesia's entire fuel distribution pipeline will likely require an upgrade to be biofuel-ready.

Biofuel certainly has the potential to replace traditional petroleum -- a clean, renewable energy upon which we can all depend.

At this time, biofuel contribution to the country's energy consumption is still very small.

For biofuel to gain widespread use, the necessary infrastructure -- more FFVs on the market, upgraded biofuel-ready supply and distribution channels, including a quality standard on biofuels -- must be in place.

A paper written by Soni Solistia Wirawan and Armansyah H. Tambunan of the Agency for the Assessment and Application of Technology (BPPT) titled The Current Status and Prospects of Biodiesel Development also cites other necessary steps. These concern "how to accelerate the construction of new biodiesel plants, plantations as a key driver in the continuity of raw material, which is supported by committed government policy and regulation. This implies all biodiesel stakeholders should work harder for the success of the biodiesel program in Indonesia".

Such a project will likely be costly, but the rewards would be well worth the effort. Biofuels are not just a solution to our energy problem, but also a long-term environmental solution.

Rp 300 billion sugar refinery to be built in West Sumatra

Syofiardi Bachyul Jb, The Jakarta Post, Padang, West Sumatra

PT Semesta Berjaya is set to build a sugar refinery in the Padang Industrial Park, Padang Pariaman regency, West Sumatra, at a cost of some Rp 300 billion (about US$33.3 million).

Company director Burhanuddin said the refinery, which would be built on a 7-hectare site, would have a refining capacity of 500 tons per day and was expected to meet surging sugar demand in the province.

"Construction will commence in July and we hope that the refinery will have entered into commercial operation within three years," he said after the groundbreaking ceremony, which was also attended by West Sumatra governor Gumawan Fauzi.

To ensure a continuous supply of sugercane, the company will develop 17,000 hectares of sugarcane plantations at five different locations in the province in collaboration with local growers.

About 5,000 ha of the planned sugarcane plantations would be located in Pesisir Selatan regency, 5,000 ha in Dharmasraya regency, 3,000 ha in Padang Pariaman regency and 1,000 ha in Padang.

Burhanuddin said the sugar refinery and sugarcane plantations would create up to 2,800 jobs.

In the early part of the 20th century, Indonesia was the second biggest sugar exporter in the world after Cuba, with annual exports of between 1.5 million and 2.5 million tons, and an annual production of between 2 million and 3 million tons.

However, production has declined sharply since then, turning the country into a net sugar importer, Baharuddin said.

West Sumatera to build sugar factory

Padang, West Sumatera (ANTARA News) - West Sumatra Province will build a sugar factory at Padang Industrial Park (PIP), to meet domestic demand of sugar and create job opportunities.

"The first corner stone of the planned sugar factory will be laid in a ceremony on April 24, 2007," West Sumatra Governor Gamawan Fauzi said here on Friday.

A total fund amounting Rp386 billion has been allocated for the construction of the sugar plant, which will be built on a plot of land measuring 40 hectares.

The sugar plant is expected to have a production capacity of 70,000 tons per year and be able to supply sugar to neighboring provinces of Riau and Jambi, Sumatra Island.

"West Sumatra want to lessen dependency on sugar imports," he said.

The province has so far imported 2,000 tons to 5,000 tons sugar to meet local demand.

The planned sugar factory is also expected to employ around 2,800 workers.

To supply the needed raw material for the would-be factory, the provincial authority also planned to develop sugarcane plantations measuring 10,000 hectares located in Sawahlunto Sijunjung, Pessel, Dharmasraya and Agam districts.

The factory's designed production capacity is about 75,000 tons in the first year of the plant`s operation.

North Sumatra Running Out of Sugar

Monday, 29 January, 2007 | 17:12 WIB

TEMPO Interactive, Medan: Sugar stocks in North Sumatra Province have decreased even though there have been 6,000 tons of sugar imported.

The additional supplies were insufficient to meet the consumption needs of the 12.5 million inhabitants of the province.

Monthly sugar consumption at North Sumatra averages 17,000 tons, whereas the sugar stocks are only 18,400 tons.

“Despite the remaining 1,200 tons, it is certain that next month North Sumatra will experience a lack of sugar,” Rommel Sembiring, Head of the Industrial and Trade Agency of North Sumatra told Tempo, on Saturday (01/27).

According to him, the additional imported sugar next month will not be able to meet people's consumption needs.

Sugar supplies this month, said Sembiring, were taken from: the remainder of last year's sugar reserves of 8,400 tons; PTPN II sugar production of 4,000 tons; and imported sugar of 6,000 tons.

In order to secure people's needs, the provincial government has asked for additional imported sugar of 9,000 tons.

During 2007, North Sumatra will need sugar reserves of 150,000 tons.

SAHAT SIMATUPANG

Govt decides to import another 250,000 tons of sugar

Jakarta (ANTARA News) - The Indonesian government has decided to import another 250,000 tons of sugar to anticipate a possible deficit in national sugar stocks due to the belated arrival of the 2007 milling season, an official report said.

To that end, the government had licenced a number of state plantation companies to import sugar. PTPN IX company would import 45,000 tons, PTPN X 55,000 tons, PTPN XI 55,000 tons, PT RNI 45,000 tons and PT PPI 50,000 tons, the Trade Ministry said in a press release issued on Friday.

The decision to import sugar was made at the recommendation of the Indonesian Sugar Council (DGI) on January 22 after the council had assessed the national white crystal sugar stocks and the estimate of sugar production and consumption until May 2007, it said.

The imported sugar must enter Indonesia on April 30 at the latest via 31 ports with the distribution of the commodity to be adjusted to the relevant or nearby provinces` needs, it said.

It said 34,000 tons of the imported sugar would go to Jakarta, 33,500 tons to North Sumatra, 25,000 tons to West Java, 25,000 tons to East Java, 15,000 tons to Central Java, 15,000 tons to South Sulawesi, 14,000 tons to Banten, and 8,000 tons to West Kalimantan.

Aceh, Yogyakarta, and South Kalimantan would receive 6,000 tons each, Riau Islands, South Sumatra and North Sulawesi (5,000 tons each, West Sumatra, Riau, Jambi, Southeast Sulawesi and Papua 4,000 tons each, Central Kalimantan, East Kalimantan, and Central Sulawesi 3,500 tons each, Lampung and Bali 2,500 tons each) Bengkulu, West Nusa Tenggara, Maluku and Gorontalo 2,000 tons each, Bangka Belitung and East Nusa Tenggara 1,500 tons each and North Maluku 1,000 tons.

East Java Produces 47 Percent of National Sugar

Wednesday, 24 January, 2007 | 12:32 WIB

TEMPO Interactive, Surabaya: East Java has succeeded in achieving annual production of 1.1 million tons of sugar, or 47 percent of national production of 2.3 million tons per year.

The sugar was produced by 31 sugar refineries in the province.

Secretary of PT Pekebunan Nusantara XI (Persero) Adig Suwandi said that the rate of demand for sugar in East Java amounted to 40,000 tons a month, with reserve stocks of 40,000 tons per month.

So, over a year, East Java only requires a total of 520,000 tons.

The remaining 580,000 tons can be allocated to other areas that are not sugar production centers, bearing in mind that national sugar consumption is estimated to be 2.6 million tons.

However, said Adig, East Java still requires imported sugar.

The reason for this is that the transfer of sugar from one area results in price differentials.

“This is a market consequence that has no distinct and visible geographical boundary,” he said on Wednesday morning (01/24).

He went on to say he hoped that the arrival of imported sugar in the port of Surabaya would be able to stabilize high sugar prices.

In addition, Adig went on to say that now sugar from farmers has all been sold.

Sunudyantoro