Tommy to operate sugar mill in E. Timor

JAKARTA (JP): Businessman Hutomo Mandala Putra, better known as Tommy, will soon begin operating a sugar mill in East Timor, a local official said Saturday.

The head of East Timor Investment Coordinating Board, Basyiruddin Yusuf, said the mill, operated by PT Trali Gula Timtim, would have a capacity of 680,000 tons of sugar per year.

"The sugar mill is set up in conjunction with the development of sugar cane plantations in five regencies here," Yusuf said, as quoted by Antara.

Basyiruddin did not say when precisely the plant would start operating.

After meeting with President Soeharto in November, East Timor Governor Abilio Jose Osorio Soares said Soeharto's eldest son-in- law Indra Rukmana and his youngest son Tommy had completed all the financial and administrative requirements for the opening of two sugar mills and sugar cane plantations in the country's youngest province.

Abilio said each factory would need at least 30,000 hectares of sugar cane, including 5,000 hectares from cooperatives, to supply the mills with raw materials.

The governor noted that Indra's company, PT Tridant, would open its plant in Manufahi regency, 80 kilometers east of the capital Dili while Tommy's parent firm, PT Putra Unggul Sejati, would set up its sugar plant in Los Palos regency, 320 kilometers east of Dili.

The investment will create at least 20,000 job opportunities, said the governor.

Local officials have often complained that many businessmen promise to invest in the province by starting this or that company but their words turn out to be empty. The officials, including the governor himself, call the imaginary companies PT Akan ("I Will" companies).

Observers cited massive unemployment as the main source of social unrest in the province because educated youths are often unable to find jobs after finishing their studies.

Yusuf said Saturday the total investment for the 160,000 hectares of sugar cane plantations would be Rp 1.8 trillion (US$210 million). He did not elaborate about the ownership of the plants.

He only said the plantations would be located in Manatuto, Covalima, Ainaro, Viqueque and Manufahi regencies.

A joint venture between an American company and an Indonesian company, owned by businessman Budi Prakoso, has also announced plans to set up a cement plant in the province.

Abilio said the company, if it really opened, would be able to produce at least 1.5 million tons of cement per year in Baucau.

Another giant, Texmaco Group, however has proved its commitment to help the impoverished province.

It built a textile plant worth Rp 3 billion (US$320,000) in Dili last year. Texmaco supplies raw materials and helps the factory market its products. (prb)