JV to build RI pulp mill

JAKARTA (JP): A consortium of companies from Sweden, Finland, the Netherlands, Japan, Singapore, the United States and China will build a pulp mill in South Kalimantan within the next three months, provincial Governor Sjachriel Darhan said here on Wednesday.

Speaking to reporters following a meeting with President Abdurrahman Wahid, the governor said the consortium would invest about US$1.2 billion to build the pulp plant.

The consortium will utilize raw materials from the industrial forest formerly owned by businessman Probosutedjo. It is estimated the new mill will provide business for about 200 small and medium-size companies in the area, Sjachriel said.

The planned pulp factory is expected to generate export earnings of about $350 million a year, the governor said. (tnt)