Agrowiyana transfers debts

JAKARTA (JP): Oil palm plantation company PT Agrowiyana has transferred debts worth Rp 71.9 billion (about US$8.5 million) from the now defunct Bank Nusa Nasional (BNN) to Bank Muamalat.

The company's president Bobby Gafur Umar said that by transferring the debts the company could go ahead with its oil palm project, which was delayed in 1998 following the closure of BNN.

He said that the debts were jointly owed by the company and village cooperatives participating in its oil palm plantation program in Jambi province.

Agrowiyana, a member of the Bakrie Group, is currently developing 4,900 hectares of oil palm plantations in Tanjung Jabung Barat district in the province under a nucleus estate and smallholder (NES) scheme.

The development of the oil palm plantation involves 3,000 local farmers and a number of village cooperatives.

"With this kind of cooperation, the company can eliminate social disputes like crop plunder and reclamation of land, which have happened in several other places," Bobby said. (10)