Subcontractors asked to join rice project

Subcontractors asked to join rice project

JAKARTA (JP): President Soeharto yesterday encouraged local
subcontractors to get involved in the establishment of the one-
million-hectare rice estate project in Central Kalimantan's peat-
moss areas.

Soeharto made his remarks during a meeting yesterday with
State Minister of National Development Planning (Bappenas)
Ginandjar Kartasasmita, Minister of Public Works Radinal Moochtar
and Minister of Agriculture Sjarifudin Baharsjah at the Bina
Graha office here.

Radinal told reporters after the meeting that the signing of
the contract for the construction of the project's primary drains
was conducted earlier this month.

The primary waterworks will be built by PT Sumatra Timur
Indonesia, a subsidiary of PT Sambu, which had extensive
experience in converting peat-moss areas into plantations in
Riau, he said.

Radinal said the secondary drains will be constructed by
state-owned PT Pembangunan Perumahan and PT Widjaja Karya.

From the one million hectares of peat-moss area, some 600,000
hectares will be converted into rice estates. The giant project
will cost over $217 million, which will be taken from the
interest on reforestation funds.

Radinal explained that the conversion of the peat-moss areas
would be carried out in several phases. Two areas, measuring
10,000 hectares each, have been converted into demonstration
plots for rice farming so far.

"We are presently preparing farmers for work on this project.
The government expects them to work on the fields, and not only
to ask for the land," Radinal said.

The giant project is part of the government's masterplan to
regain self-sufficiency in rice.

Indonesia used to be the biggest rice importer in the world,
but became self-sufficient in 1984. Rice exports exceeded imports
until 1993, but the country has had to rely partly on imports
since then.

Last year, rice production fell to its lowest level in 15
years with 46.6 million tons from 48.2 million tons in 1993. The
decline was caused by unfavorable weather and plant diseases.
(pwn)