Chinese investors eye RI palm oil sector: Govt

Chinese investors eye RI palm oil sector: Govt

Zakki P. Hakim, The Jakarta Post, Jakarta

A group of Chinese investors have committed to investing up to
US$8.6 billion in Indonesia's palm oil sector over the next five
years, a senior minister said on Wednesday.

Coordinating Minister for the Economy Aburizal Bakrie said,
while falling short of identifying the investors, he had asked
the Indonesian Chamber of Commerce and Industry (Kadin) to help
follow up on the commitment.

Separately, Kadin chairman Mohamad S. Hidayat said the pledge
came at a time when Indonesia desperately needs to expand its
stagnant agricultural industry, including the palm oil sector.

"The government has asked Kadin to organize local industry
players in following up on the commitment, as such investment
would need about two million hectares of land," Hidayat said on
the sidelines of Kadin's national meeting.

Kadin would organize between 40 and 50 industry players to be
involved in the projects, to be located outside Java with
Sumatra, Sulawesi and Kalimantan the main options.

President Susilo Bambang Yudhoyono is expected to officially
sign the deal during his planned visit to China in mid-July,
Hidayat said.

Earlier, the government revealed that the country needed a
total investment of Rp 20.52 trillion (about $2.16 billion) for
the plantation sector to grow by an average 6.27 percent per
annum.

The investment would enable palm oil output to expand by an
average 6.21 percent to reach 16.74 million tons in 2009, from
the estimated 13.15 million tons in 2005.