Thu, 17 Jun 2010

Jakarta (ANTARA News) - Saudi Arabia has agreed to purchase 180 tons of cooking oil worth Rp1.17 trillion from Indonesia, a cabinet minister said.

Agriculture Minister Suswono said here on Thursday that the agreement was reached in a business matching between businesses of both nations in Jeddah recently.

"It is expected that both countries would next sign contracts for the supply of 600 thousand tons of crude palm oil per annum with a total value of between Rp1 trillion and Rp5 trillion," the minister said when he explained the results of his visit to Saudi Arabia on June 11-13, 2010.

Besides to Saudi Arabia, the minister who was accompanied by legislators, regional government officials, district heads, investment officials and businessmen, also visited Finland on June 14-16, 2010.

The minister said that Saudi Arabian investors were also interested in purchasing papers from Indonesia and making investment on rice business in Southeast Sulawesi.

The Saudi interest to invest in the rice sector was expressed during the minister`s meeting with Saudi Arabia`s minister for Agriculture Fadh bin Abdulrahman bin Sulaiman Baghunaim.

"The Saudi minister expressed the readiness of his country to invest in Indonesia," Suswono said.

He said that in order to meet its domestic needs for rice, Saudi Arabia had been importing one million tons per annum of rice, three million tons of wheat and seven million tons of barley for cattle feeds.

The minister said that Saudi Arabia had allocated US$30 billion for businesses to invest in various sectors overseas, and Indonesia should be able to take advantage of this.