RI-Malaysian palmoil plant

JAKARTA (JP): A Malaysian firm will establish a US$750 million palm oil plant in West Kalimantan in cooperation with Indonesian businessman Indra Rukmana, a son-in-law of President Soeharto.

An official of the Investment Coordinating Board (BKPM) said that the parties signed an agreement in Kuala Lumpur in April to set up the plant on a 200,000-hectare palmoil farm.

BKPM has approved the project, which is 60 percent owned by Kretam Holdings Bhd. of Malaysia and 40 percent by Indra Rukmana.

Kretam's chief executive officer, Ahmad Zahid Hamidi, was quoted by Bisnis Indonesia daily yesterday as saying that the project is expected to start operating later this year. (icn)