Increasing Sugar Production in Indonesia through Land Suitability Analysis and Sugar Mill Restructuring
2.1. Analysis of the Current Situation
2.2. Problems Identification
2.3.1. Land Suitability Analysis
- Climate: Air temperature, rainfall
- Plant oxygen requirement: Drainage
- Rooting condition: Soil texture, coarse fragments, soil thickness
- Nutrient supply capacity: Cation exchange capacity, base saturation, pH, organic C
- Nutrient reserve: Total N, total P2O5, total K2O
- Toxicity: Salinity, sodicity, sulfidic depth
- Erosion potential
- Flooding risk
- Land preparation: Stoniness.
- Class S1, Highly Suitable: Land having no significant limitations to sugarcane plantations.
- Class S2, Moderately Suitable: Land having limitations that are moderately critical for sugarcane. The limitations will reduce cane productivity and extra inputs are required so the land can be successfully used for growing cane.
- Class S3, Marginally Suitable: Land having limitations that severely impact cane productivity. Heavy investment is required to make the land usable for cane production.
- Class N, Not suitable: Land having severe limitations that cannot be or are difficult to remediate.
2.3.2. Resolution of Other Issues
2.3.3. Tradeoff Analysis
2.4. Delivering Programs and Strategies
3. Results and Discussion
3.1. Sugar Production and Consumption in Indonesia
3.2. Sugarcane Area and Production
3.3. Land Suitability for Sugarcane
- Limited production forest (Hutan Produksi Terbatas (HPT) in Indonesian),
- Production forest (Hutan Produksi Tetap (HP) in Indonesian),
- Converted production forest (Hutan Produksi dapat Dikonversi (HPK)), and
- Other land uses (Areal Penggunaan lain (APL) in Indonesian).
3.4. Sugarcane Varieties and Crop Management
3.5. Sugar Mill Performance
3.6. Tradeoff Analysis of Increased Yield Potential vs. Land Area Expansion
3.6.1. Scenario 1: Maximizing Productivity and Sugar Yield
3.6.2. Scenario 2: Maintaining Productivity and Increase Land Area
3.7. Practical and Policy Implications
- Increasing sugarcane production,
- Increasing sugar yield and added value products from sugarcane, and
- Creating an enabling environment so that the first two strategies can be implemented effectively and efficiently.
3.7.1. Increasing Sugarcane Production
- Increasing sugarcane productivity: The increase in sugar production, due to the increase in cane production, varies among sugarcane varieties. Thus, better sugarcane varieties enable increased cane productivity, or potential attainable yield.
- Reducing yield loss at harvest time: Efficient harvesting via mechanization and post-harvest logistic can decrease loss and produce better cane yield and sugar yield.
- Increasing farming efficiency: Agronomically, improving production requires sophisticated site-specific nutrient management, water management via irrigation, and integrated weed, pest, and disease control. Site-specific nutrient management requires regular soil and plant nutrient testing so that efficient fertilizer recommendations can be formulated to increase yield and reduce overfertilization. Sugarcane is one of the most intensive users of water. In Indonesia, around 80% of production is irrigated, increasing sugarcane production can reduce water availability for people, other croplands, and natural ecosystems. A proper water balance calculation for irrigation scheduling is necessary. Strategies to increase tons per hectare would require better management and land-use planning that avoid environmental stress. In Brazil, sugarcane has expanded more than 10 million hectares from 1990 to 2015. A guideline to sustainable sugarcane production in Brazil has been established, and social, economic, and environmental impacts need to be evaluated .
- Extensification: This includes extension and consolidation of planting areas outside Java. The main priority is the existing agricultural area by integrating existing areas or crop exchanges. An important factor is the current fragmented agricultural land. Fragmented agricultural land has caused land degradation and hampered agricultural development. Fragmented land is characterized by inefficient farm management, high labor cost, restricted irrigation application, and inconvenient crop management. Land consolidation is a method to tackle land fragmentation, which can increase farm sizes and farming efficiency. Small fields of land are consolidated and regularly used infrastructure can be constructed. For smallholder framers, land consolidation is participatory and the emphasis is on local development with the provision of infrastructure. In areas where large plantations have been established, land swaps are an option. Land swap means that the government offers compensation by providing a similar land area in another location. Land consolidation has been shown to improve land quality and agricultural production. Experiences in China indicate that land consolidation could increase farmer income, improve facilities and livelihood, as well as protect the environment in farming regions .
3.7.2. Increasing Sugar Yield and Added Value Products
- Revitalization of existing sugar mills. To fulfill the demand for sugar, 10–25 new sugar mills having a capacity between 6000 and 15,000 TCD and an expansion of 3,500,000 ha of additional sugarcane plantation are needed. Nine new sugar mills have been planned for 2020. The target of self-sufficiency is impossible to attain using normal production, demonstrating the need to build new sugar mills . Technology that improves the energy and water use efficiency in traditional sugar mills, as noted by Birru et al. , can be implemented.
- Development of downstream industry. Currently, diversification of sugarcane products is lacking. Developing downstream sugar industry will grow new income sources that will strengthen the sugar industry. Sugar mills can be reoriented to produce several products. Beside crystal sugar, sugar mills, with the investment in new processing technology, can produce liquid sugar, brown sugar, low-calorie sugar, and functional sugar. Also, by-products can be converted into marketable products.
3.7.3. Creating an Enabling Environment
- Infrastructure development via road and transport can increase production efficiency. This requires financial investment.
- Incentives to encourage national and foreign investment in cane plantation and sugar mills are required. Partnership between foreign investors and local entrepreneurs enables beneficial cooperation. Foreign experts play a more dominant role in technical aspects, whereas local entrepreneurs address non-technical aspects such as local market, licensing administration, and business safeguards.
- Human resources has an important role in advancing the industry. Training in high technology precision farming and mill operation will be key.
- These aspects require institutional strengthening so all operation can be standardized.
- A synergistic policy is required as the sugar industry involves various ministries and institutions. A Coordinator Ministry should coordinate and synergize these institutions.
- Increasing cane production, which includes increasing cane productivity, reducing loss at harvest time, and increasing farming efficiency. In addition, extensification via new land development and land consolidation are required to increase sugar cane production.
- Increasing sugar yield and added products through: Revitalization of existing sugar mills, establishing new mills outside Java, and the development of a downstream industry.
- Establishing enabling environments to ensure the first two programs can run efficiently and effectively. This includes infrastructure development, investment development, human building capacity, institution strengthening, and policy synergism.
Conflicts of Interest
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|Year||Initial Stock||Import||Sugar Production||Total Supply||Distri-Bution||Last Stock|
|Initial stock (GKP and GKR)||1447.30||1226.81||933.34||945.04|
|Import (GKP and GKR)||76.70||65.30||97.04||0|
|GKP from cane and imported raw sugar||2803.60||2561.82||2204.62||2118.21|
|GKR from imported raw sugar||2759.21||2809.05||3261.64||3234.01|
|Total Production (GKP and GKR)||5562.81||5370.87||5446.25||5352.21|
|Total Provision (GKP and GKR)||7086.71||6662.98||6496.64||6297.25|
|Distribution (GKP and GKR)||5859.90||5729.64||5551.60||5335.66|
|Final Stock (GKP and GKR)||1226.81||933.34||945.04||961.59|
|Variety||Maturity||Potential of Production|
|PS 865||Early-middle||80.40 ± 11.20||9.38 ± 1.41|
|Kidang Kencana||Middle-late||112.50 ± 32.50||10.99 ± 1.65||99.02 ± 23.80||9.51 ± 0.88|
|PS 864||Middle-late||122.10 ± 22.80||8.34 ± 0.60||88.08 ± 23.00||9.19 ± 0.64|
|PS 891||Middle-late||110.60 ± 27.10||9.33 ± 1.19||84.04 ± 32.90||10.19 ± 1.35|
|PSBM 901||Early-middle||70.40 ± 16.20||9.93 ± 1.02|
|PS 921||Middle||139.10 ± 10.10||8.53 ± 1.19|
|PS 951||Late||146.10 ± 30.40||9.87 ± 0.86|
|AAS Agribun||Middle-late||134.60 ± 68.95||10.05 ± 0.97||112.50 ± 33.11||7.76 ± 0.47|
|AMS Agribun||Middle-late||132.50 ± 63.34||10.03 ± 0.45||110.00 ± 57.50||7.84 ± 0.11|
|ASA Agribun||Middle-late||121.10 ± 42.10||10.18 ± 0.13||116.63 ± 49.52||7.16 ± 0.30|
|CMG Agribun||Middle-late||102.30 ± 53.97||10.68 ± 1.27||84.77 ± 20.02||7.94 ± 0.23|
|Year||Number of Mills||Area (ha)||Cane||Sugar|
|Production (ton)||Productivity (ton/ha)||Sugar Yield (%)||Production (ton)||Productivity (ton/ha)|
|1||Increasing sugarcane productivity||Increase sugarcane production per hectare for planting season. Existing planting areas are the main target. Increasing productivity, i.e., the increase in productivity and harvesting area|
|2||Reducing yield loss at harvest time||By reducing this loss, production can increase.|
|3||Increasing farming efficiency||Optimally use space and time in planting and efficiently for sugarcane farming. Optimal agro-input per hectare can result in a higher yield|
|4||Extensification||Increase the area for sugarcane planting from non-agricultural land and shrub land|
|1||Revitalization of existing sugar mills||Improving mill operational conditions to increase sugar yield and milling capacity. Repairing supporting facilities.|
|2||Development of downstream industry||Increase the added value of cane-based products, other sugar-sourced crops, and sugar processing activities.|
|1||Infrastructure development||To increase the efficiency of the production system and production means, value chain, domestic transportation system, and accessibility, and to increase international market connection|
|2||Boosting investment||Financial capital is the main factor for implementing any activities. This capital can be received from investors through efforts to attract their interest to invest in research and development as well as for developing prospective business|
|3||Human capacity building||Human resources play an important role: their ability and knowledge determine the success attainment of the established targets|
|4||Institution strengthening||The operation to be run in a standard system. Business processes need to be clarified through institution strengthening.|
|5||Policies synergism||Several ministries and institutions are related to the sugar industry. The Coordinator Ministry for economic affairs can coordinate and synergize these institutions. Ministry of Agriculture works collaboratively with the Ministry of Trade, Ministry of Industry, and others in determining policies related to sugar affairs|
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Sulaiman, A.A.; Sulaeman, Y.; Mustikasari, N.; Nursyamsi, D.; Syakir, A.M. Increasing Sugar Production in Indonesia through Land Suitability Analysis and Sugar Mill Restructuring. Land 2019, 8, 61. https://doi.org/10.3390/land8040061
Sulaiman AA, Sulaeman Y, Mustikasari N, Nursyamsi D, Syakir AM. Increasing Sugar Production in Indonesia through Land Suitability Analysis and Sugar Mill Restructuring. Land. 2019; 8(4):61. https://doi.org/10.3390/land8040061Chicago/Turabian Style
Sulaiman, Andi Amran, Yiyi Sulaeman, Novia Mustikasari, Dedi Nursyamsi, and Andi Muhammad Syakir. 2019. "Increasing Sugar Production in Indonesia through Land Suitability Analysis and Sugar Mill Restructuring" Land 8, no. 4: 61. https://doi.org/10.3390/land8040061