$893m pulp project starts

$893m pulp project starts

JAKARTA (JP): PT Adindo Hutani Lestari, a timber company partly owned by businesswoman Siti Hediati Prabowo, is developing a timber estate and pulp industry with a total investment of Rp 2.01 trillion (US$893 million) in Bulungan, East Kalimantan.

"Rp 210 billion of the investment will be used to develop the 230,000 hectares of timber estate, while the remaining Rp 1.8 trillion will be invested in a pulp plant," the company said in a statement.

Adindo, the statement said, has so far planted 550 hectares with such fast-growing tree species as accasia and eucalyptus.

The company, which started operation only early this year, said it has developed a method of land clearing without burning which involves under-brushing, felling, cross-cutting and finishing.

"The method fully conforms with the ruling of the Ministry of Forestry, which has banned the burning of forested areas for land clearing," the company added.

East Kalimantan Governor M. Ardans and Secretary-General of the Ministry of Forestry Oetomo S. visited the timber estate early this week. (04)