Jakarta (Indonesia Window) – The world’s top five and largest sugar producer in the Middle East, Al Khaleej Sugar Co. (AKS), has been committed to making an investment in Indonesia worth 2 billion U.S. dollars, Indonesian Industry Minister Agus Gumiwang Kartasasmita has said.
The AKS investment is aimed at developing ethanol in the archipelagic country.
“AKS will invest in an integrated sugar factory in Indonesia. Apart from producing sugar, AKS also plans to produce bioethanol and electricity from biomass,” said Agus Gumiwang in a statement received here on Sunday (Nov. 7).
This commitment was made by the Managing Director of Al Khaleej Sugar Co. as well as the Chairman of the Jamal Al-Ghurair Group, Jamal Al-Ghurair, during a meeting with the minister in Dubai on Tuesday (Nov. 2).
Agus expected that the investment of the Dubai sugar company would boost Indonesia’s sugar industry more efficient in the future.
“AKS will develop ethanol fabrication from sugar. Ethanol is expected to be an alternative fuel source,” he said, adding that it is in line with efforts to reduce carbon emissions by seeking cleaner and environmentally friendly energy sources.
Such countries as Australia, the United States, and the Philippines have developed large amounts of ethanol as an alternative to fossil fuels. The use of ethanol in energy development could reduce carbon emissions in the transportation sector.
In addition to fuel, Agus said, the use of sugar ethanol could decrease dependence on refined sugar.
“In this context, sugar imports could be suppressed and even in the future it is likely to decrease by around 750,000 tons per year,” he said.
AKS sugar factory in Dubai has a capacity of 6,000 tons of sugar per day.
Besides owning a sugar factory in Dubai, AKS also invests in Egypt and Spain. AKS annual income is estimated at 14 billion U.S. dollars.
“National sugar demand is around 6.7 million tons. There are several ways to reduce sugar imports, including by setting up sugarcane plantations and promoting digital transformation process. AKS’ investment in Indonesia, God willing, will help meet the national sugar needs,” said Minister Agus Gumiwang.
Reporting by Indonesia Window