Malaysia and RI tie up in plantation projects

Malaysia and RI tie up in plantation projects

JAKARTA (JP): The HAK consortium of Malaysia and PT Plantana Razsindo Group, a plantation company, have agreed to establish a 47,000-hectare palm oil plantation in West Kalimantan's Kapuas Hulu regency.

The agreement was signed on Monday in Pontianak, West Kalimantan, between Maj. Gen. Dato' Hasan bin Moh. Saleh, representing the HAK consortium, and Rommy P.A. Anas, representing Plantana Razsindo.

Dato' Hasan was quoted by Antara as saying that the plantation would be located in the Nanga Badau region, along the Indonesia- East Malaysia border. However, he said, most of it would be closer to Malaysia for its better infrastructure facilities.

The news agency did not explain when the project would begin.

A US$200 million investment is expected for the first phase of the plantation.

He said that cooperation deal between the two parties would cover other sectors, including tourism, and aim at regions along the border.

Dato' Hasan said the two parties are planning to develop the area around Sentarum Lake, Kapuas Hulu.

Meanwhile, Anas said the project would benefit the people living in the area because it would increase the number of social facilities such as hospitals and education and training centers.

Presently, plantations are developed and rehabilitated through a nucleus estate strategy, which involves private and state-owned companies and the local people. (pwn)