Iran Jaya attracts 28 local oil palm investors

JAKARTA (JP): The government's effort to open oil palm plantations in new areas of the country may be succeeding as 28 local investors are mulling development of oil palm plantations in various parts of Irian Jaya.

Head of the provincial plantation office Asmuni Cholil told Antara on Saturday in the provincial capital of Jayapura that 28 investors had received approval from the Ministry of Forestry and Plantations for their plan to open the oil palm plantations in the country's easternmost province.

If realized, the investment would make the province one of the world's main crude palm oil (CPO) producers, Asmuni said.

Major CPO production centers are Riau and North Sumatra.

The government has closed both provinces to new oil palm plantations and directed investors to the eastern part of the country.

Five of the 28 investors have opened plantations. They are state plantation company PT Perkebunan Nusantara II, PT Varita Majutama, PT Sinar Mas Group, PT Texmaco and PT Korindo.

Nusantara II has opened oil palm plantations on 10,000 hectares in the Arso subdistrict, Jayapura district, and on 4,000 hectares in the Prafi subdistrict, Manokwari district. The state company has also developed a CPO processing plant and is currently harvesting.

Varita Majutama has opened a 2,500-hectare oil palm plantation in Babo subdistrict, Manokwari district. Sinar Mas, one of the country's biggest CPO producers, has a plantation on 3,000 hectares in the Kaureh district, Jayapura district.

Texmaco and Korindo opened plantations in the Merauke district, each on 3,000 hectares.

Asmuni said companies which would soon realize their investment plans included PT Raja Garuda Mas, another of the country's largest CPO producers, and PT Hendrison Iriana.

Garuda Mas and Hendrison plan to develop their plantations in the Boggo subdistrict, Jayapura district, and in the Beraur subdistrict, Sorong district. Both companies recently completed feasibility studies and are awaiting the Ministry of Forestry and Plantations issuance of letters permitting utilization of forest areas for the plantations. (jsk)