Indonesia: Sugar, spices and rubber

Agriculture occupation is essential as it provides livelihood to the farmers and raw materials to many industries. Many agriculture-based industries like the textile industry, tea industry, sugar industry, etc. The industries like spices and rubber production also depend upon agriculture and a favourable climate. Such industries are the backbone of many countries. Indonesia is one such country. The list of sugar Industries in Indonesia is extensive and can be dated back to the 17th century. Indonesia is also a leading producer of spices and rubber. Let’s learn about these industries in Indonesia in detail.

Sugar Industries in Indonesia

The sugar industries are one of the major industries in Indonesia. Since much sugarcane is produced in Indonesia, more factories have developed. The sugar Industries in Indonesia began in the seventeenth century. Nearly 3 million tons of sugar were produced by 179 factories in Indonesia in the early thirties.

However, sugar prices took a hit, and the list of sugar Industries in Indonesia shrunk down to 35 factories. The sugar Industries in India have seen a lot of ups and downs. They bloomed during the first world war; however, another slump was experienced during the second world war. Today the list of sugar Industries in Indonesia is increasing as this industry has been nationalised.

 Old sugar factories in Java have been rehabilitated, and new ones are being added to the list of sugar Industries in Indonesia. Today, there are 63 sugar mills in Indonesia that 18 various companies own.

Sugar production in Indonesia

Out of all the sugar manufactured in Indonesia, three-quarters of it comes from Indonesia. Other sugar-producing places are Sumatra and Sulawesi. However, in recent times the farmers in Java are shifting to more profitable crops. Sugar production is still dominating and covers about 1/3rd of the land.

Around 70% of the sugarcane that goes to the list of sugar Industries in Indonesia comes from small farmers who cultivate sugar on small portions of land. The rest of the sugarcane comes from various plantation sites built by various factories on the list of sugar Industries in Indonesia. The land under sugarcane production decreases as there is less return on investment for sugarcane crops than few other crops like rice.

Processing

The Indonesian government formed Asosiasi Gula Indonesia, also known as the Indonesia Sugar Association, in 1981. 90% of the sugar mills currently in Indonesia are publicly owned. Currently, two hundred nine thousand tons of cane per day is the processing capacity of sugar mills in Indonesia. Most of the factories on the list of sugar Industries in Indonesia are very small compared to the International Standard. Hence the efficiency of these small mills is generally low.

Most countries recover about 85% of the sugar from the sugarcanes, while the Indonesian factories can obtain around 83%. The need for highly refined sugar until 1997 was mostly fulfilled through imports, and domestic product wasn’t preferred. Palm sugar Indonesia is also called the gula Jawa, mostly produced in Indonesia and Malaysia.

Spice industry in Indonesia

The spice industry in Indonesia is highly productive. Indonesia is the fourth-largest exporter of spices. Indonesia is also the second-largest producer of pepper in the world. The Indonesian government plans to start the Indonesia Spice Up the World program to increase spice production in Indonesia further.

The main spices that are exported from Indonesia are nutmeg, white pepper, cloves, and cinnamon. The spices in Indonesia have a distinctive aroma and taste. Many restaurants have also become part of the Indonesia Spice Up the World program, and they will receive additional benefits from the Indonesian government.

Rubber industries in Indonesia

The rubber industry in Indonesia is also one of its main industries. Indonesia is considered the second-largest producer of rubber in the world. The domestic consumption of rubber in Indonesia is less than the amount exported. Natural rubber is the most commonly exported rubber from Indonesia.

Indonesia exports large quantities of crumb rubber to Japan and the United States. The region of South Sumatra holds the largest number of rubber plantations in Indonesia. Even though there are so many rubber plantations in Indonesia, their productivity is still lower than in some countries like Thailand.

Conclusion:

The economy of Indonesia is greatly supported by agro-based industries like sugarcane production and rubber and spice export. The list of sugar Industries in Indonesia is extensive and makes it one of the largest producers of sugar in the world. The government has formed the Indonesia sugar association to boost sugar production. However, since most of the sugar mills are small and do not meet international standards, the efficiency of sugar mills in Indonesia is low. Indonesia is also or of the largest producer of spice globally, and the rubber export in Indonesia is also large in quantity.