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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