Thailand's Charoen Pokphand Group is increasing its oil palm plantation investments in Indonesia through its subsidiary PT Central Palma Plantation, as part of its plan to own up to 100,000 hectares of plantations in Indonesia by the end of the year, executive vice president Virachai Ratanabanchuen said Monday (21/5/07).
Thailand's largest agribusiness conglomerate thinks the palm oil business has bright prospects, Ratanabanchuen said, adding that Indonesia was chosen because its government is focusing on the palm oil industry.
Additionally, "investments required to acquire lands in Indonesia are relatively cheap, around 8,000 baht per hectare, while in Malaysia, the investments required can reach 123,000 baht per hectare," he said without indicating Charoen Pokphand's investment size.
"We're ready to acquire some plantations in, for example, Sumatra, like in Aceh," he said, according to Dow Jones Newswires.
Charoen Pokphand, via Central Palma, already owns 60,000 hectares in West Kalimantan. Central Palma is expected to import at least 8 million tons of high-quality oil palm seeds from Costa Rica to sow the land.