Govt estates to expand Irian palm oil output
Govt estates to expand Irian palm oil output
JAKARTA (JP): Executives of 14 state-owned plantation firms,
PT Perkebunan Nusantara (PTPN) I through XIV, agreed yesterday to
form a consortium to expand oil palm plantations in the eastern-
most province of Irian Jaya.
According to a statement issued by the Ministry of
Agriculture, the 14 presidents of the state-owned firms met
yesterday with Minister of Agriculture Sjarifudin Baharsjah to
report on the new venture during the latter's visit to Arso,
Irian Jaya.
Sjarifudin was in the region to inaugurate a 13,500-hectare
oil palm estate and two processing plants in Arso and Prafi
managed by PTPN II.
The consortium was established after the economic scale of
PTPN II's project was considered too small to be feasible. It was
then decided that the project should be expanded to the feasible
scale of 102,000 hectares of oil palm estates and 11 processing
units.
The expanded project is expected to produce an average of
606,000 tons of crude palm oil (CPO) a year valued at an
estimated US$300 million.
The project will require a total investment of Rp 1.03
trillion ($447.82 million) which is expected to come from the
consortium and bank loans allocated for cooperatives.
The project will employ up to 44,500 heads of families to be
involved in nucleus estate programs and 6,600 employees. A family
of nucleus estate farmers usually earns about Rp 400,000 a month.
The project is also expected to give the Irian Jaya provincial
government a contribution of up to Rp 116 billion a year.
In the future, the oil palm estate in Irian Jaya is expected
to become the hub of Asia Pacific CPO-production. (pwn)
JAKARTA (JP): Executives of 14 state-owned plantation firms,
PT Perkebunan Nusantara (PTPN) I through XIV, agreed yesterday to
form a consortium to expand oil palm plantations in the eastern-
most province of Irian Jaya.
According to a statement issued by the Ministry of
Agriculture, the 14 presidents of the state-owned firms met
yesterday with Minister of Agriculture Sjarifudin Baharsjah to
report on the new venture during the latter's visit to Arso,
Irian Jaya.
Sjarifudin was in the region to inaugurate a 13,500-hectare
oil palm estate and two processing plants in Arso and Prafi
managed by PTPN II.
The consortium was established after the economic scale of
PTPN II's project was considered too small to be feasible. It was
then decided that the project should be expanded to the feasible
scale of 102,000 hectares of oil palm estates and 11 processing
units.
The expanded project is expected to produce an average of
606,000 tons of crude palm oil (CPO) a year valued at an
estimated US$300 million.
The project will require a total investment of Rp 1.03
trillion ($447.82 million) which is expected to come from the
consortium and bank loans allocated for cooperatives.
The project will employ up to 44,500 heads of families to be
involved in nucleus estate programs and 6,600 employees. A family
of nucleus estate farmers usually earns about Rp 400,000 a month.
The project is also expected to give the Irian Jaya provincial
government a contribution of up to Rp 116 billion a year.
In the future, the oil palm estate in Irian Jaya is expected
to become the hub of Asia Pacific CPO-production. (pwn)