Perhutani to invest in non-forestry areas
Perhutani to invest in non-forestry areas
JAKARTA (JP): State-owned forestry firm Perum Perhutani will
spend a total of Rp 26 billion (about US$2.35 million) in fresh
investment this year in agribusiness activities.
Perhutani director Marsanto, M.S. said on Thursday the effort
would be part of the company's strategy to diversify its business
into nonforestry activities.
He said revenue from its teakwood plantations had continued to
decline lately due to rampant theft.
"With the new investment, we'll seek other potential resources
in the forest. But, forestry is still our core business,"
Marsanto said in a media briefing.
Marsanto said about Rp 16 billion for the planned investment
would be obtained from the Ministry of Finance and the remaining
Rp 11 billion would come from its own coffers.
According to him, the money will be used to finance the
company's projects under a profit-sharing scheme or through
equity participation with other local companies.
Marsanto said among the potential areas the company plans to
focus on were agribusiness, including potatoes and mushrooms, and
the marble making industry.
"We are finalizing the memorandums of understanding with four
local marble making companies including PT Aldaka Selo Indah, PT
Dian Niaga Batuan, PT Sembilan Warna and PT Java Stone Perkasa,"
he added
He said farming projects would also involve local farmers
living near the company's teakwood plantations in a bid to stop
theft.
Perhutani lost Rp 464.8 billion ($49 million) worth of trees
last year because of widespread theft at its forestry concessions
in Java.
According to the company's official data, some 740,584 million
trees per year, mostly teakwood, were stolen during the past four
years.
"The company's stock of teakwood dropped by 20 percent to
about 28.33 million last year, from 34.20 million in the previous
year," Marsanto said.
Perhutani manages 1.95 million hectares of forests, mostly
teak. State forests outside Java are being managed by PT
Inhutani. (03)