28.
INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2015
T
h
e
P
l
an
ta
t
i
on
D
i
v
is
i
o
n’
s
su
ga
r
ca
n
e
e
st
a
tes
a
re
sit
ed in
S
o
ut
h
Su
ma
tr
a
an
d
Ce
nt
ra
l
Ja
va
.
O
v
er
t
he
y
ea
rs
,
ou
r su
gar
o
p
er
a
t
io
n
h
a
s
be
e
n
w
el
l
s
u
pp
o
r
te
d
b
y
p
os
it
iv
e
d
riv
ers
such
a
s
s
h
o
rt
fa
ll
s
i
n
d
o
m
e
s
ti
c
su
pp
ly
,
p
o
pu
la
ti
o
n
g
r
owt
h an
d a
f
l
o
u
ri
sh
i
n
g
fo
o
d
a
n
d
b
ev
er
ag
e
in
du
s
t
ry
.
As a local producer, the Division is protected by legislations
shielding domestic sugar prices from global fluctuations.
An import quota is triggered should domestic prices fall
below the government-mandated floor price of Rp8,900
per kilogramme. At present, domestic sugar prices have
kept above the international market.
2015 REVIEW
In South Sumatra, our sugar cane estate is integrated
with an 8,000 tonnes of cane per day (TCD) sugar mill and
refinery with an annual processing capacity of 1.44 million
tonnes. In 2015, we harvested 746,000 tonnes of sugar
cane from these estates and produced 58,000 tonnes of
sugar, compared to 701,000 tonnes and 54,000 tonnes in
2014 respectively.
Total planted sugar cane area in South Sumatra
was expanded to 13,358 hectares in 2015, from 13,062
hectares in 2014. The Division also achieved 449 hectares
of new plantings.
In Central Java, the Division has a tolling arrangement with
local farmers who supply the sugar cane for our 4,000 TCD
sugar mill and refinery with an annual processing capacity of
720,000 tonnes. We continued to provide these smallholders
with agricultural advice and credit for seed cane, planting
costs and fertiliser purchase, with repayment being deducted
from their sales proceeds.
In 2015, we processed 384,000 tonnes of sugar cane, versus
452,000 tonnes in 2014. The sugar cane mainly came from
6,400 hectares of sugar estates belonging to 369 farmers
under the supply arrangement. Total sugar production was
28,000 tonnes in 2015, compared to 34,000 tonnes in 2014.
The Group’s share of this production was 10,000 tonnes in
2015, compared to 13,000 tonnes in 2014.
Revenue from the sale of sugar and molasses increased 13%
to Rp682 billion, representing 7% of the Plantation Division’s
revenue in 2015. Domestic sugar prices in Indonesia
recovered following the mandatory increase in sugar floor
price from Rp8,500 to Rp8,900 per kilogramme effective
in May 2015, and lower sugar imports in the first half of 2015.
Packaging of sugar at the sugar refinery in South Sumatra
PLANTATION REVIEW
SUGAR: INDONESIA
