RNI to build sugar factory in Malang

The Jakarta Post, Jakarta | Tue, 04/26/2011

State agribusiness firm PT Rajawali Nusantara Indonesia (RNI) is ready to invest some Rp 1 trillion (US$116 million) for the construction of a sugar factory in the East Java town of Malang, expected to commence operations next year.

Malang regent Rendra Kresna said RNI and state surveyor company PT Sucofindo had conducted a survey related to the planned construction in Kalipare district and that the factory would probably sit across 200 hectares of land.

“But we cannot tell you yet exactly which sub-district will be the location of the factory because we’re waiting for the feasibility study to be completed.

We hope the new sugar factory will start operating by 2012,” he said Tuesday in Malang, as quoted by tempointeraktif.com.

The planned factory is expected to produce up to 8,000 tons of sugar daily, so as to support RNI’s plan of increasing its production capacity from 32,900 tons of sugar per day to 42,650 tons.

Rendra added the factory was expected to absorb up to 700 permanent workers, as well as 2,500 contract-based personnel in the region.