From Government of Indonesia

Govt. Sets Aside 6.1m Hectares for Oil Palm

The government is reserving 6.1 million hectares of land for oil palm plantations to meet growing demand for crude palm oil, State Minister for State Enterprises Sugiharto said.

He said land has been set aside in Kalimantan, Papua and other areas, and that the government hopes to boost the country's CPO production so that growing additional supplies for the bio-fuel industry will not affect stability in domestic supply, Antara reported on Monday (23/4/07).

CPO is used in the country mainly as feedstock for cooking oil, the prices of which surged lately with growing demand for CPO abroad.

Sugiharto said about 2.4 million hectares of the land will be reserved for state plantation companies.

Foreign investors are expected to have greater interest in the plantation sector, especially after the announcement of a new law allowing foreign investors to have control over land for 90 years.
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