Indonesian Political, Business & Finance News

Legislators support peat land mega-project

Legislators support peat land mega-project

JAKARTA (JP): Legislators yesterday supported the government's plan to convert one million hectares of peat land into rice fields in Central Kalimantan but stressed that thorough studies were needed to ensure the mega project was a success.

Members of the House of Representatives' Budgetary Commission voiced their support in a hearing yesterday with members of the Indonesian Peat Society.

During the hearing, the chairman of the society, Bambang Setiadi, acknowledged that by opening up the peat land, Indonesia could reduce its imports of several important commodities, such as soybeans, corn, peanuts and rice.

"The import value of the commodities, which total some Rp 4 trillion (US$1.74 billion) per annum, can actually be used for cultivating those crops on peat land," Bambang said.

The giant project is part of the government's efforts to rejuvenate the country's self-sufficiency in rice.

Indonesia used to be the biggest rice importer in the world but became self-sufficient in 1984. Rice exports exceeded imports until 1993, but the country had to start importing again in 1994.

That year rice production fell to 46.6 million tons -- the lowest level in 15 years -- from 48.2 million tons in 1993. The decline was caused by unfavorable weather and plant diseases.

Bambang pointed out yesterday that in spite of the government's optimism over the project, several aspects should be studied thoroughly.

Authority

"The society believes that a special authority for the project is needed, considering the size of the project is almost 10 times the size of Singapore," he said.

He also reiterated that the most important aspect of the project was not the opening up the one million hectares of peat land but increasing the land's fertility.

"Without increasing the land's fertility, we cannot expect transmigrants, who are expected to be the tillers, to be willing to work in the area. Otherwise, we will surely face serious problems... Peat land must be tilled immediately after it is exposed," Bambang said.

He also considered research an important part of the project because special treatment would be needed to cultivate vegetation on the highly acid peat moss.

"The project needs sound and careful management. If it fails, we will be criticized, particularly by the international community," he warned.

During yesterday's hearing legislators questioned Law No. 24/1992, which declares peat land a protected area.

But Bambang pointed out that another regulation, Presidential Decree No. 32/1990, specifies that the protected areas are limited to those which have a moss layer of at least three meters thick and are located on the upstream areas of rivers.

Legislator Sulaiman Biyahimo, from the United Development Party, said the project should be located in various areas, and not limited to a single plot of land, to prevent large amounts of deforestation.

Minister of Forestry Djamaludin Suryohadikusumo said earlier this week that 60 percent of the peat land intended for the project consisted of forests.

The area overlaps with the concessions of 15 forestry companies. (pwn)

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