BKPM issues permits to develop palm oil industry
BKPM issues permits to develop palm oil industry
JAKARTA (JP): The Investment Coordinating Board (BKPM) has
issued permits to 25 local investors to develop the palm oil
industry, a report said yesterday.
The palm oil sector has been partially closed to foreign
investors since March because of overinvestment at home and
oversupply in world markets.
The 25 companies, which will invest Rp 1,800 billion ($692
million) were issued the permits between June 16 and July 16,
according to BKPM's vice deputy, Andung A. Nitimihardja.
"The projects are scattered all over Indonesia, including
eastern Indonesia," Andung said as reported by Bisnis Indonesia
yesterday.
The board approved 12 investment projects in palm oil
plantations worth Rp 1,200 billion (see accompanying table) and
13 palm oil processing plants worth Rp 600 billion, according to
the report.
The government restricted foreign investment in palm oil since
late last year. Foreign investors are still allowed to open up
palm oil plantations in eastern Indonesia, but they have to
involve smallholders under the nucleus-smallholders scheme.
The sudden decision drew strong protest from Malaysian
investors, many of whom had already began preparatory work as
they waited for their licenses from the investment board.
State Minister of Investment Sanyoto Sastrowardoyo has denied
the suggestion that the restrictions on foreign investment were
intended to protect giant local investors.
Foreign investors control about half of the entire palm oil
estates in Indonesia, estimated at more than 5.5 million
hectares.
According to the Directorate General of Plantation, Indonesian
investors controlled about 2.1 million hectares as of last year,
of which 1.02 million were owned by big private companies,
441,000 by state companies, and 750,000 by smallholders.
World palm oil production is estimated to be 24.7 million tons
this year, while consumption is estimated at just 17 million
tons.
Indonesia produced 3.86 million tons of crude palm oil in
1996, up 11.2 percent compared to the previous year. It is the
world's second largest producer after Malaysia.
Table: NEW INVESTMENT PROJECTS IN PALM OIL PLANTATION
NAME SIZE (ha) VALUE LOCATION
----------------------------------------------------------
PT Sawit Dumai Utara 16,500 Rp 79.0b Riau
PT Surya Dumai Perkasa 10,000 Rp 35.0b Riau
PT Sawit Desa Kapuas 10,000 Rp 18.0b W.Kalimantan
PT Malera Sedayu Piarta 32,000 Rp 130.0b W.Kalimantan
PT Sago Nauli 12,000 Rp 58.2b N.Sumatera
PT Singkep Payung Perkasa 45,000 Rp 210.0b Riau
PT malindo Raja Diraja 28,500 Rp 131.0b S.Kalimantan
PT Hamparan Masawit Bangun 12,000 Rp 82.4b C.Kalimantan
PT Mura Potensi 40,000 Rp 268.3b S.Sumatera
PT Pancasurya Agrosejahtera 9,500 Rp 45.0b Riau
PT Bangun tata Lampung Asri 8,000 Rp 37.5b Lampung
PT Bengkulu Sawit Jaya 15,000 Rp 96.8b Bengkulu