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)