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)