The country may not need to import white sugar next year as local producers will be able to meet local demand once a government-funded refinery revitalization program is completed, Trade Minister Mari Elka Pangestu says.

"We won't need to import white sugar next year as the gap in the demand can be offset with the stock," she said.

According to the ministry, national production of white sugar is estimated to reach between 2.7 million and 2.9 million tons this year, while demand is forecast to reach 3.18 million tons.

Mari said the country could save between 1.2 million and 1.3 million tons of refined sugar and white sugar combined annually, although she refused to mention the tonnage of the country's white sugar reserves.

Refined sugar is consumed by the food and beverage industry.

Mari said the stock should be enough for domestic consumption, especially during the milling period from January until April, during which sugar refineries typically import the commodity.

Citing an estimate made by the Indonesian Sugar Council, Mari said the country had this year received a total of 6.2 million tons of white and refined sugar from imports and local production.

Domestic consumption of the two sugar types stands at 4.9 million tons so far this year, leaving some 1.3 million tons in stock, according to Mari.

With the aim to increase domestic production to match domestic demand by 2009, the government will increase production by renovating 52 refineries, most of which are located in Java, Sumatra and Sulawesi.

The government has estimated that Rp 7.9 trillion (US$857.95 million) will be needed to finance the program.

Part of the fund will be financed by banks, including state lenders Bank Rakyat Indonesia and Bank Negara Indonesia, as well as privately owned Bank Central Asia.

The Agriculture Ministry's director general of plantations Ahmad Manggabarani said the program would boost the country's sugar production to 2.7 million tons this year and secure self-reliance next year.

Indonesia, Asia's largest sugar importer, may see its sugar production jump to 3.3 million tons next year.

The government also aims to increase the country's total sugarcane plantation area, mostly by injecting capital into state plantation firm Perusahaan Perkebunan Nusantara (PTPN) to help it acquire and manage more land.

The country's total sugarcane plantation area grew 4.15 percent to 427,000 hectares this year from 410,000 hectares in 2007, and is expected to reach 450,000 hectares by next year, Ahmad said.

U.S.-based energy giant Chevron Corp. has been approved by the Indonesian government to develop gas reserves in five deep-water fields off East Kalimantan at a projected total cost of US$6.97 billion.

"The government has approved the POD (plan of development) and the company may now start operations," director general for oil and gas at the Energy and Mineral Resources Ministry Evita H. Legowo said Thursday.

Energy and Mineral Resources Minister Purnomo Yusgiantoro signed the approval on Aug 29, a media statement from the ministry shows.

Three of the fields — Gandang, Gendalo, and Maha — lie in a concession of Chevron Ganal Ltd., while the remaining two — Ranggas and Gehem — lie in a concession of Chevron Rapak Ltd.

According to Bloomberg, the entire venture may pump a maximum of close to one billion cubic feet of gas a day, or equivalent to 13 percent of Indonesia's current output.

"This will be the country's first deep-sea drilling project," said Edy Hermantoro, upstream director at the ministry, adding that parts of the field lay in concession areas operated separately by Chevron and Rome-based Eni Spa.

Therefore, the POD in the area will integrate and involve both companies, he said.

Edy said Chevron and Eni may spend $6.97 billion on the project, of which $2.19 billion may be spent on developing wells and the rest on the construction of a floating processing unit and other facilities, Bloomberg reported.

The project will increase gas supply to a liquefied natural gas (LNG) plant in Bontang in East Kalimantan Province, which will export 75 percent of its production and sell the rest domestically, Edy said.

Chevron's corporate communications manager, Santi Manuhutu, said the company had not officially received a letter of approval.

"Chevron is waiting for the official government approval of the deepwater gas project," she said in a statement sent via e-mail.

The amount of time needed to develop the fields will be dependent on government approvals, market conditions and the achievement of key project milestones, she added.

Chevron holds an 80 percent operated interest in Gehem and Gendalo fields, she said.