PT Kamaddhenu Ventures Indonesia will built the factory in the regency of Central Aceh, Mustafa Kamal, the spokesman of the Central Aceh district administration said.
The district administration welcomes the construction of a sugar mill in the regency of Central Aceh, Mustafa said in Takengon on Monday.
Kamaddhenu Ventures official Davarakonda Venkataratnam, a Vietnamese of Indian origin, said first the company would build fence around the 75 hectare plot of land where the factory will be built in the sub-district of Ketol.
The process of building the project will take around 14 months by phases that would include office buildings, dormitory, supporting facilities and the factory, Venkataratnam said.
Venkataratnam said the company would need 12 hectares of farmland for sugarcane plantation and the land has been available in Central Aceh.
The Central Aceh regency wants to make sugar its second main commodity after arabica coffee. Central Aceh has 40,000 hectares of arabica coffee plantations.
Currently Central Asia has 7,940 hectares of sugar plantations producing 48,890 tons of sugarcane per year .
The presence of PT Kamadhenu is expected to encourage the local farmers to grow sugarcane.