Six sugar producers granted machinery subsidies

On Monday the government granted Rp 22.5 billion (US$2.5 million) in subsidies to six sugar producers to revitalize and expand production and to reduce the country’s dependence on imported sugar.

The Industry Ministry's machine industry director Chanty Triharso said subsidies would be used to purchase machines to replace inefficient equipment.

“Subsidies are worth 10 percent of a company's investment value. The maximum amount is Rp 10 billion per company,” he told a press conference at the ministry in Jakarta.

The six companies are PT Perkebunan Nusantara (PTPN) VII (Rp 9.7 billion), PTPN X (RP 6 billion), PTPN XI (Rp 3.5 billion), PT Rajawali Nusantara Indonesia (RNI) I (Rp 1.6 billion), PT RNI II (Rp 1.6) and PT Candi Baru (Rp 554 million).

Chanty said companies had to buy locally made machines as a condition of the subsidy to stimulate Indonesia’s machinery and capital goods industries.

source: thejakartapost