KL-RI palm oil project

JAKARTA (JP): Indonesia and Malaysia are cooperating in the development of a 200-hectare palm oil plantation in Natal, South Tapanuli, North Sumatra.

The cooperation was marked by the establishment of a new venture, PT Kretam Iramindo, the firm's president, Yopie S. Batubara, announced in Medan, the provincial capital, on Saturday.

"The agreement on the establishment of the new venture was signed in Medan recently," he was quoted by the Antara news agency as saying.

The venture is owned by Kretam Holdings Berhad of Malaysia, PT Widya Utama and Camerindo Sakti International Inc.

He said the joint venture will invest US$147 million for development of the plantation and construction of a crude palm oil plant in the province.

A former regent of South Tapanuli, Toharudin Siregar, said that the local administration has spent Rp 51 billion ($23.34 million) on infrastructure, including roads, to support the planned plantation.

The ceremony for the start up of the plantation project was marked by site supervision from the air by executives of the new venture on Saturday. (fhp)