Unggul Widya to expand oil palm estates

JAKARTA (JP): PT Unggul Widya Teknologi Lestari will expand its oil palm estates in South Sulawesi's Mamuju regency from 10,000 hectares to 25,000 hectares, the company announced Saturday.

Company president director Muin Pabinru said the company would open another 15,000 hectares for its oil palm estate after the success of its current estate.

Pabinru was quoted by Antara as saying the 10,000 hectare estate was unproductive land before the company converted it into small oil palm plantations in cooperation with 3,000 transmigrant families from Java, Bali and West Nusa Tenggara.

He said there were 23,000 hectares of land available for plantations in four subdistricts but only 15,000 hectares were good for oil palm estates.

The 15,000 hectares are strategically alongside the Trans Sulawesi road network.

Unggul Widya was the first national private firm to invest in the area's plantations. Its crude palm oil mill there started commercial production in 1992.

The firm was negotiating with the Mamuju local administration for cooperation in the expansion project, Pabinru said.

The Mamuju administration was expected to appropriate the 15,000 hectares of land and the company provide funds, technology and workers for the development.

"We are about to reach final agreement," he said, adding that the governor had given the green light to the project.

Pabinru said he did not yet know how much the project would cost but estimated it would cost between Rp 6 million and Rp 7 million for each hectare of oil palm plantation until the trees began to bear fruit. (jsk)