Sawang, Aceh (ANTARA News) - State Enterprises Minister Mustafa Abubakar said palm oil and rubber commodities are promising and therefore he called on banks not to hesitate to extend credit for palm oil and rubber plantation development.
"Banks must not hesitate to extend as much credit as possible for development of commodity plantations," he said on the sidelines of the launching of rubber and palm oil plantations in Sawang, North Aceh, here on Saturday.
He said palm oil and rubber are promising commodities. "Right now the national palm oil production has reached 19 million tons a year or 45 percent of total world`s production," he said.
He said with the help of banks through their credit the government`s efforts to revitalize land would get a boost.
The palm oil and rubber plantation development program in Sawang, North Aceh, covers 41,200 hectares of people`s land in 12 districts.
Initially a total of 19,200 hectares of palm oil and rubber plantations would be opened in North Aceh, East Aceh and Aceh Tamiang.
The project is financed by PT Bank Mandiri and PT Bank BNI, guaranteed by PT Perkebunan Nusantara (PTPN) III and PTPN IV.
The revitalization program will involve 20,500 families as local farmer participants.
Each of the families will be allocated an average of two hectares of land.
The program is expected to be able to accelerate plantation development to improve the welfare of the people in Aceh.(*)