Cooperatives launch cotton plantations

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)