Two sugar mills, one cement plant to be built in East Timor

Two sugar mills, one cement plant to be built in East Timor

JAKARTA (JP): East Timor will have two sugar mills and a
cement plant next year, its governor Abilio Jose Osorio Soares
said yesterday.

Abilio expects the presence of the new industry will be able
to provide at least 20,000 job opportunities for East Timorese
youths.

He pointed out that President Soeharto's eldest son-in-law
Indra Rukmana, and his youngest son Hutomo Mandala Putra, better
known as Tommy, have completed all the financial and
administrative requirements for the opening of the sugar mills
and sugarcane plantations in the country's youngest province.

"Each mill will need about 30,000 hectares of sugarcane to
supply it with its raw material, and about 5,000 hectares of this
will be provided by local farmers through cooperatives," Abilio
said after meeting with President Soeharto at the Bina Graha
presidential office.

PT Tridant, owned by Indra, Siti Hardiyanti Hastuti Rukmana's
husband, will open in Manufahi regency, 80 kilometers east of the
capital Dili.

Tommy's company PT Putra Unggul Sejati, will set up its sugar
mill in Los Palos regency, 320 kilometers east of Dili.

"After a lot of persuading they eventually agreed to invest...
it is difficult to attract investment in East Timor because of
its political situation," Abilio said.

He added that he had received many investors who promised to
invest in the province. "Most of them assured me of their
intention to invest, but I don't know when they will actually
realize their promise," he said smiling.

Abilio did not elaborate on the total investment value of the
mills. However deputy head of the East Timor Investment
Coordinating Board Basyiruddin Yusuf said early this year that
the total investment would be at least Rp 450 billion (US$138
million).

The two mills will produce 160 tons of sugar and 8,100 tons of
liquid sugar a year, all for the domestic market.

The governor also revealed that a joint-venture between an
American company and a national company, owned by businessman
Budi Prakoso, will open a cement plant in the province.

"Construction will start next year in Laifu, Baucau regency,
and production capacity will be at least 1.5 million tons per
year," the governor said without elaborating further. (prb)