Three firms to invest $211m in palm oil

Three firms to invest $211m in palm oil

JAKARTA (JP): Three local businesses -- PT Barito Pacific
Timber Group, PT Gunung Sawit Bina Lestari and PT Sumarco Makmun
Indah -- plan to invest a total of Rp 495 billion (US$211.5
million) in crude palm oil (CPO) estates and industry.

Bambang Priyono, an executive of Barito Pacific Timber, said
in Kendari, Southeast Sulawesi, yesterday that his company will
invest some RP 400 billion to open a 45-hectare palm oil estate
in Kendari.

He added that the company had completed a feasibility study
and environmental impact study for the project.

"The development of this palm oil estate will be run under the
system of the national private estates, not under the
transmigration-estate system" Bambang was quoted by Antara as
saying.

Other companies investing in palm oil estates in the province
use the transmigration-estate system, in which transmigrants are
brought in from other areas to toil the estates. Among such
companies are PT Prakarti Trimitra with a concession of 2,000
hectares, PT Agro Indah Sembada with 30,000 hectares and PT Utomo
Makmur Mandiri with 25,000 hectares.

Meanwhile, Gunung Sawit president Ramli Sutanegara said in
Palembang, South Sumatra, yesterday that his company will open a
12,000-hectare palm oil estate on Bangka Island, with an
investment of Rp 80 billion.

He said many investors have opened new palm oil estates on
Bangka, due to the commodity enjoying good prices on the world
market.

Sumarco Makmun said yesterday that the company plans to build
a Rp 15-billion crude palm oil plant on Bangka Island, in
cooperation with a Malaysian firm.

The processing plant, which will be located in the town of
Pangkalpinang on Bangka Island, will have a production capacity
of 30 tons of fresh fruit per hour.

To support the operation of the plant, Sumarco Makmun plans to
open a palm oil estate on a 25,000-hectare plot on Bangka.
However, it is not yet clear how much money the estate will cost.
(rid)