Sugar production showed comparable changes, rising from 2.1 million tonnes in 1990 to nearly 2.5 million tons in 1993 and 1994 and declining to 2.1 million tonnes in 1996. Sugarcane has had to compete with other crops, especially rice. Relatively less attractive returns as compared to other crops have continued to discourage some farmers from growing cane, leaving certain factories without sufficient raw materials to operate at capacity. Over the years, aside from price incentives, many Government schemes have been implemented to encourage sugarcane production, including the 1975 Smallholder Sugarcane Intensification Programme and the 1981 Induced Increasing Sugar Production Programme. At present, the Government provides financial assistance to growers in various forms, for example to support production, harvesting and hauling costs through the Koperasi Unit Desa, or rural cooperative unit.
Some funds also flow through the factories to assist with fertilizers and chemicals.
PTBs operate somewhat independently, and many are involved in other businesses such as rubber or palm oil. The share of mills in the private sector is likely to grow if the industry expands as the Government envisages, and if measures are implemented to close antiquated publicly-owned small capacity mills in Java. The efficiency of the small factories is generally relatively low, particularly with regard to the sugar extraction rate. Many countries achieve recovery of over 85 percent of sugar, while Indonesia obtains about 83 percent or less. By 2005 further sugar processing facilities are planned to bring total production to over 3 million tonnes.