Agrowiyana transfers debts

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)