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)