15 firms invest Rp 1.3 trillion in provincial plantations

JAKARTA (JP): Fifteen companies have signed agreements on the establishment of plantations under a transmigration scheme with a total investment of Rp 1.3 trillion (US$597 billion), an official at the Ministry of Transmigration said here yesterday.

"The planned plantations will be established on a total area of 35,000 hectares in six provinces and involve 100,000 families of transmigrants," said Mintaria Sianipar, head of the ministry's business participation division.

The six provinces are East Kalimantan, Central Kalimantan, Riau, South Sumatra, South Sulawesi and Irian Jaya.

Sianipar noted that out of the 15 companies, 10 will focus on palm oil plantations, covering a total area of 15,000 hectares, while the five others will be corn, nut, soybean and cashew tree plantations.

According to Sianipar, some 150 companies have registered at his office, wanting to cooperate with transmigrants. However, not all of them will be awarded the rights to open plantations as certain criteria is required to open such plantations.

The most important aspect to be considered is the components of credits given to the transmigrants. "We do not want the credits proposed by the companies to burden transmigrants," Sianipar was quoted by Antara as saying.

Under the transmigration scheme, the interested companies are required to open plantations in conversion forests, which in the long run will become the possession of the transmigrants after they pay off the credits to the operating companies.

The government is committed to transporting the transmigrants to the locations and providing them with houses. (rid)