Silk cultivation loans distributed in stages

Silk cultivation loans distributed in stages

JAKARTA (JP): The Ministry of Forestry has distributed Rp
500,000 (US$205) a hectare in the first stage of loans to silk
farmers in Sukabumi, West Java.

The director general of reforestation and land rehabilitation,
Hendarsun S. Sanusiputra, said the Sukabumi silk farmers, who
were developing silkworms under a nucleus-estate-and-smallholder
scheme in cooperation with PT Indo Jado, would receive loans
worth Rp 4.35 million a hectare when they entered the final stage
of silk cultivation.

Hendarsun said the silk cultivation program in Sukabumi was
now in its earliest stage with the farmers were still planting
mulberry which will be used as silkworm feed in nine months.

As soon as the mulberry trees grow leaves, the farmers would
receive a Rp 2.35 million a hectare loan for raising the
silkworms, while an extra Rp 120,000 would be lent to build
silkworm boxes and the other Rp 1.29 million would be for
operational costs, he said.

The silk operation in Sukabumi would cover 800 hectares, he
said.

Hendarsun said recently the ministry had set aside Rp 15
billion in soft loans to promote silk cultivation in West Java,
West Sumatra, and South Sulawesi on 3,390 hectares,

He said the loans, with an interest rate of 6 percent a year,
would mature in five years, including a one-year grace period.
The loans would be channeled to the farmers through Bank
Pembangunan Daerah Jawa Barat (West Java's regional development
bank) and the nucleus company, Indo Jado, which is owned by the
former minister of forestry, Sudjarwo, and businessman Anthony
Salim.

Indonesia's cocoon production rose from 130 tons in 1994/1995
to 134 tons in 1995/1996, but fell to 80 tons in 1996/1997.

The country's annual cocoon demand has averaged about 400 tons
over the past few years. (13)