Consortium to build US$1.2b pulp factory

Consortium to build US$1.2b pulp factory

Antara, Jakarta

A private consortium owned by eight countries will soon build a US$1.2 billion pulp factory in Batu Licin subdistrict in Indonesia's South Kalimantan province, Governor Sjachriel Darham announced on Wednesday.

"The pulp factory, with an annual production capacity of 600,000 tons, will be built in the next two to three months," Sjachriel said after his meeting with Vice President Hamzah Haz at the Hamzah's office here.

The consortium is owned by China, Finland, Germany, Japan, Singapore, Sweden, the Netherlands, and the United States.

Singapore will spend the most on the project, while Finland will provide the best pulp technology, the governor said, adding that officials of the eight countries are eager to meet with Hamzah to discuss the project.

The raw materials, he said, will come from a 300,000-hectare timber estate in South Kalimantan, which is controlled by the Indonesian company, Menara Hutan Buana.

The pulp company will employ some 60,000 workers along with the services of 200 small-scale industries, Sjachriel said.

During their meeting, the governor also informed the vice president of his recent reciprocal visit to Thailand.

Sjachriel said that Thailand is ready to help develop a power plant in South Kalimantan, and wants to buy coal from the Indonesian province.

Thailand, he said, also wants to build a fodder factory in a 3.7-hectare land in the province.