Indonesian Political, Business & Finance News

Malaysia's TDM to develop plantation land

| Source: GOI
TDM Bhd of Malaysia has signed a heads of agreement (HoA) with its subsidiary, PT Rafi Kamajaya Abadi, and H. Rahman to acquire and develop 30,000 hectares of oil palm plantation land, Asia Pulse reported Monday (14/4/08).

The land located in West Kalimantan will be developed into an oil palm plantation under a proposed joint venture, it said in a statement. Total investment is RM320.14 million ($100 million).

TDM said it will fund the investment for the joint venture through internally generated funds and/or bank borrowings.

The statement said that in 2007, TDM had, via PT Rafi, acquired 10,000 hectares of land in Indonesia for oil palm plantation business.

It said the joint venture will allow TDM to enjoy economies of scale in its plantation operations, as the land is located next to its existing oil palm plantation business.
Tags: business
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