CDC enters oil palm sector

JAKARTA (JP): The UK venture capital Commonwealth Development Corporation (CDC) signed on Thursday a US$32 million investment agreement with local palm oil processing and plantation company PT Harapan Sawit Lestari.

The agreement raises CDC's stake in the company to 65 percent and management control.

"This investment is important to CDC as it builds on our $160 million of investments in the oil palm sector in Southeast Asia and the Pacific Islands," said CDC managing director Justin Braithwaite.

Harapan operates in Ketapang regency, West Kalimantan, with a 25,400 ha plantation area. CDC previously held the equivalent of a 20 percent stake in the company through convertible bond investment in the firm.

Justin also said CDC was interested in acquiring plantation, mining and consumer good operations currently under the control of the Indonesian Bank Restructuring Agency.

He said CDC had allocated at least $100 million for IBRA investment plans. (rei)