Humpuss eyes oil palm and jute in Sulawesi

JAKARTA (JP): A subsidiary of Humpuss group is studying the feasibility of developing oil palm and jute plantations on a 30,000 hectare area of Southeast Sulawesi, Antara reported.

If materialized, the project would involve local farmers as partners with the company, PT Perkebunan Gunung Sinaji (PGS), the news agency said, quoting the company's president, Muhamad Djaja.

Djaja said in Kendari, Southeast Sulawesi's capital, that the province had potential to cultivate the two commodities.

The provincial administration has earmarked 500,000 hectares of land for plantations, but so far only 200,000 hectares have been used, according to Antara.

Djaja said jute's high economic value would help the government's drive to eradicate poverty.

Its fiber is used in textile production, the stalk is used in pulp production and leaves are used in animal feed.

"The expansion of local jute production will help ease Indonesia's textile industry's dependence on imported cotton," Djaja said.

The government has encouraged the development of jute plantations in 20 provinces since 1989. Total area planted with jute is expected to reach 300,000 hectares with production reaching 24 million tons by 1999. (08)