Deposits asked for plantations

Deposits asked for plantations

JAKARTA (JP): Companies wanting to develop plantations in
Central Kalimantan must deposit Rp 1 billion (US$424,000) at the
province's development bank, the local authorities said
yesterday.

Head of the provincial agriculture office Hendry Nahan said in
Palangka Raya, the province's capital, that the Rp 1 billion
deposit was necessary to ensure that investors had enough funds
to develop the plantations.

"The Rp 1 billion deposit requirement is not obligatory
but it is important as a preventive measure," he was quoted by
Antara as saying.

Hendry said 163 companies had submitted proposals to establish
plantations, covering 2.2 million hectares, in the province. They
must all deposit Rp 1 billion at Bank Pembangunan Daerah.

The provincial administration has radically altered the way it
licenses plantation projects to speed up approvals.

"Many investors had to wait a year to get a license," he said.

The local government has modified its master plan, allowing
the conversion of 1.7 million hectares, originally designated as
protected forest, into agricultural plantations, he said.

The new master plan allows 13.6 million hectares of farm land,
up from 11.9 million hectares.

The central government's one-million hectare rice field
project, now under development, will cover most of the new farm
areas, he said. (jsk)