Chinese investors to invest $8.6B dollars in Indonesia' s palm oil

A group of Chinese investors have committed to investing up to 8.6 billion US dollars in Indonesia's palm oil sector over the next five years, a senior minister was quoted as saying by the Jakarta Post here Thursday.

Indonesian Coordinating Minister for the Economy Aburizal Bakrie said he had asked the Indonesian Chamber of Commerce and Industry (Kadin) to help follow up on the commitment.

Separately, Kadin Chairman Mohamad S. Hidayat said the pledge came at a time when Indonesia desperately needs to expand its stagnant agricultural industry, including the palm oil sector.

"The government has asked Kadin to organize local industry players in following up on the commitment, as such investment would need about 2 million hectares of land," Hidayat said.

President Susilo Bambang Yudhoyono is expected to officially sign the deal during his planned visit to China in mid-July, Hidayat said.

Earlier, the government revealed that the country needed a total investment of 20.52 trillion rupiahs (about 2.16 billion US dollars) for the plantation sector to grow by an average 6.27 percent per annum.

The investment would enable palm oil output to expand by an average 6.21 percent to reach 16.74 million tons in 2009, from the estimated 13.15 million tons in 2005.

Source: Xinhua