Iran Jaya attracts 28 local oil palm investors

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)