Indonesian Political, Business & Finance News

Giant rice field project to cost over $217 million

Giant rice field project to cost over $217 million

JAKARTA (JP): The government's plan to establish 1.3 million
hectares of new rice fields in Central Kalimantan will involve
private companies with the fields being farmed by transmigrants,
Minister of Agriculture Sjarifudin Baharsjah said yesterday.

Sjarifudin announced after meeting with President Soeharto
yesterday that canals would be constructed by PT Sambu, which has
experience converting swamps into plantations sites in Riau.

Sjarifudin's meeting with Soeharto focused on the construction
of the rice fields in Central Kalimantan's swamps. It was also
attended by State Minister of National Development Planning
Ginandjar Kartasasmita, Minister of Public Works Radinal
Moochtar, Minister of Forestry Djamaludin Suryohadikusumo, State
Minister of Environment Sarwono Kusumaatmadja, Minister/State
Secretary Moerdiono and Secretary for Development Control Tuk
Setyohadi.

Sjarifudin said opening the new rice fields would initially be
done without herbicides or soil tilling.

"Millions of tons of rice will be produced by the wetland
areas because we hope to harvest between 3.5 tons and four tons
of rice a hectare each season," he said.

The giant project is part of the government's effort to
rejuvenate the country's self-sufficiency in rice.

Indonesia was formerly the biggest rice importer in the world
but became self-sufficient in 1984. Rice exports exceeded imports
until 1993, but the country has had to rely partly on imports
since then.

Last year, rice production fell to 46.6 million tons -- the
lowest level in 15 years -- from 48.2 million tons in 1993. The
decline was caused by unfavorable weather and plant diseases.

According to Djamaludin, the project would cost Rp 500 billion
(US$217.86 million), which would be derived from the interest on
reforestation funds.

The government's reforestation funds currently total Rp 2
trillion.

Sjarifudin said the first phase, to start next year, would
include building canals to reduce the swamps' acidity.

The first phase, he said, is expected to be completed in two
or three years. The entire project will be completed in 10 years.

Djamaludin said that from the 1.3 million hectares of swamp,
750,000 hectares will be used for food crops and 570,000 hectares
for forests.

He said that 400,000 hectares of the forests will be managed
by eight different state-owned and private forest
concessionaires, including PT Djajanti, PT Ardjuna Wiwaha and PT
Barito Pacific.

"I have explained the situation to the concession holders and
they are aware of the importance of the project to achieve self-
sufficiency in rice. The concession holders have said they are
ready to hand over parts of their concessions," he said. (pwn)

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