Jakarta, CNBC Indonesia – Chief Executive of the State-Owned Enterprise Food Holding PT Rajawali Nusantara Indonesia (Persero) (ID Food) Frans Marganda Tambunan revealed that El Nino has an impact on this year’s sugar and salt production. It turns out that El Nino actually increases sugar and salt production.
First, regarding sugar consumption production, which is the main business of ID Food. Frans said that El Nino did indeed decrease sugarcane productivity. However, when processed, sugar yields actually increased.
“In 2023, the main issue is El Nino and water shortages, which have an impact on the agriculture and plantation sectors. In sugarcane, which is the largest industrial sector, accounting for 35% of ID Food’s business, the effect of El Nino reduced field production by 19%. However, on the other hand, a decrease in water content resulted in an 8% increase in sugar yields. So El Nino has its pluses and minuses,” said Frans at the Road to CNBC Indonesia Awards, Wednesday (11/29/2023).
This year, Frans is optimistic that he can produce 262 thousand tons of sugar. This amount has increased compared to last year’s production of only 219 thousand tons.
“This is due to a water shortage in nearly 54 hectares of sugarcane that is self-managed or managed by others. Productivity yields in the factory have increased,” he added.
Meanwhile, in the national salt sector managed by PT Garam, the presence of El Nino actually brings happiness. El Nino has increased salt production by over 200%.
“This year, we project a salt production of 278 thousand tons compared to 68 thousand tons last year. This is a significant increase in production for PT Garam, and we hope that next year it can be consistent,” he explained.
[Gambas:Video CNBC]
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(wur/wur)
