Bukopin, BMI for plantation

Bukopin, BMI for plantation

JAKARTA (JP): The government will assign Bank Bukopin and Bank
Muamalat Indonesia (BMI) to finance the development of the
country's plantation sector, Minister of Forestry and Plantations
Muslimin Nasution said on Tuesday.

The banks are expected to provide loans of up to Rp 10.5
trillion (US$1.4 billion) as initial capital for plantation
companies, Muslimin said.

In addition, the government will also cooperate with
international financial institutions with enough experience in
financing plantation businesses, such as the Netherlands-based
Rabobank.

Most investors in the plantation sector have neglected their
projects due to a freeze on local bank lending.

Muslimin was quoted by Antara as saying that only 1.4 million
hectares, or 16.5 percent, of 9 million hectares of forests
licensed for plantations had been realized. (gis)