BKPM issues permits to develop palm oil industry<\/p>\n
JAKARTA (JP): The Investment Coordinating Board (BKPM) has
\nissued permits to 25 local investors to develop the palm oil
\nindustry, a report said yesterday.<\/p>\n
The palm oil sector has been partially closed to foreign
\ninvestors since March because of overinvestment at home and
\noversupply in world markets.<\/p>\n
The 25 companies, which will invest Rp 1,800 billion ($692
\nmillion) were issued the permits between June 16 and July 16,
\naccording to BKPM's vice deputy, Andung A. Nitimihardja.<\/p>\n
\"The projects are scattered all over Indonesia, including
\neastern Indonesia,\" Andung said as reported by Bisnis Indonesia
\nyesterday.<\/p>\n
The board approved 12 investment projects in palm oil
\nplantations worth Rp 1,200 billion (see accompanying table) and
\n13 palm oil processing plants worth Rp 600 billion, according to
\nthe report.<\/p>\n
The government restricted foreign investment in palm oil since
\nlate last year. Foreign investors are still allowed to open up
\npalm oil plantations in eastern Indonesia, but they have to
\ninvolve smallholders under the nucleus-smallholders scheme.<\/p>\n
The sudden decision drew strong protest from Malaysian
\ninvestors, many of whom had already began preparatory work as
\nthey waited for their licenses from the investment board.<\/p>\n
State Minister of Investment Sanyoto Sastrowardoyo has denied
\nthe suggestion that the restrictions on foreign investment were
\nintended to protect giant local investors.<\/p>\n
Foreign investors control about half of the entire palm oil
\nestates in Indonesia, estimated at more than 5.5 million
\nhectares.<\/p>\n
According to the Directorate General of Plantation, Indonesian
\ninvestors controlled about 2.1 million hectares as of last year,
\nof which 1.02 million were owned by big private companies,
\n441,000 by state companies, and 750,000 by smallholders.<\/p>\n
World palm oil production is estimated to be 24.7 million tons
\nthis year, while consumption is estimated at just 17 million
\ntons.<\/p>\n
Indonesia produced 3.86 million tons of crude palm oil in
\n1996, up 11.2 percent compared to the previous year. It is the
\nworld's second largest producer after Malaysia.<\/p>\n
Table: NEW INVESTMENT PROJECTS IN PALM OIL PLANTATION<\/p>\n
NAME SIZE (ha) VALUE LOCATION
\n ----------------------------------------------------------
\n PT Sawit Dumai Utara 16,500 Rp 79.0b Riau
\n PT Surya Dumai Perkasa 10,000 Rp 35.0b Riau
\n PT Sawit Desa Kapuas 10,000 Rp 18.0b W.Kalimantan
\n PT Malera Sedayu Piarta 32,000 Rp 130.0b W.Kalimantan
\n PT Sago Nauli 12,000 Rp 58.2b N.Sumatera
\n PT Singkep Payung Perkasa 45,000 Rp 210.0b Riau
\n PT malindo Raja Diraja 28,500 Rp 131.0b S.Kalimantan
\n PT Hamparan Masawit Bangun 12,000 Rp 82.4b C.Kalimantan
\n PT Mura Potensi 40,000 Rp 268.3b S.Sumatera
\n PT Pancasurya Agrosejahtera 9,500 Rp 45.0b Riau
\n PT Bangun tata Lampung Asri 8,000 Rp 37.5b Lampung
\n PT Bengkulu Sawit Jaya 15,000 Rp 96.8b Bengkulu<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bkpm-issues-permits-to-develop-palm-oil-industry-1447893297",
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"sponsor": "Okusi Associates",
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