Cooperatives launch cotton plantations

JAKARTA (JP): Cooperatives and farmers, in cooperation with Unitex of Japan, are establishing one million hectares of cotton plantations in South Sulawesi with an initial investment of Rp 5 billion (US$2.3 million).

Chairman of the Association of Indonesian Employee Cooperatives (Inkopkar) Agus Sudono told reporters here over the weekend that the plantations are being established in six regencies throughout the province.

The plantation development involves the association, local village cooperatives and farmers, besides the Japanese company, he said.

Agus said about 30,000 hectares of cotton plantations have been developed in the province over the last two years, involving some 3,000 families.

According to Agus, farmers grouped in village cooperatives are each allowed to obtain a loan of Rp 5 million per hectare.

The farmers are free to sell their cotton to Unitex or any yarn manufacturer, he said.

Indonesia spends about $800 million per year for the importation of 90 percent of its demand for cotton.

Indonesia may be able to stop importing cotton when the development of the one-million-hectare plantations is completed, Agus was quoted by the Antara news agency as saying.(icn)