Barito's wood-chip plant

JAKARTA (JP): Prajogo Pangestu, a conglomerate who controls the forest-based Barito group, plans to build a wood chip plant on Sungsang island in South Sumatra to process 1.5 million cubic meters of raw wood to be harvested from its 126,000 hectare concession in the province.

Agusnang, the president of PT Musi Hutan Persada, the subsidiary of Barito group in S. Sumatra, said in Palembang that the island would be the ideal location for the plant project because it could berth large ships.

The Antara news agency reported that the company had surveyed 1,000 hectares of land on the island which would be used for development of the factory. The plant is projected to start up production in 1996. (yns)