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)