Sanggau to have pulp plant

JAKARTA (JP): The Ministry of Forestry is inviting private companies to help set up a US$2 billion pulp factory in Sanggau, West Kalimantan, an official said.

Director General of Forest Utilization Titus Sariyanto told Antara in Senggau on Wednesday that the ministry would assign state-owned PT Inhutani III and other state-owned forestry enterprises to build the factory in cooperation with private firms.

Titus said a state-owned forestry company had a 14,000 hectare timber estate in Sanggau which would be expanded to 120,000 hectares to support the planned pulp factory.

The timber estate expansion would involve local people, especially Sanggau Dayak tribespeople, who would be trained in state-owned forestry companies and provided with two to four hectares, he said.

Locals participating in the timber estate development under a nucleus estate and smallholder scheme would also get an allowance of Rp 60,000 (US$24.55) each for processing land certificates and loans, he said.

Titus said 200 Sanggau youths were being trained in PT Inhutani III and other state-owned companies. (13)