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)