OPIC finances rice milling project in RI

Fri, 02/17/2012 - 09:44

A company called PT Lumbung Padi Indonesia has started the construction of a US$21 million integrated rice million facility after it obtained a soft-loan facility from the Overseas Private Investment Corporation, a US government-owned financial institution.

The construction of the new rice milling facility, located in Mojokerto, East Java, is expected to be completed by the end of this year. 

“Lumbung Padi Indonesia is the first private company in the agriculture sector to obtain funding from OPIC,” said Fara Luwia, President Director of Lumbung Padi Indonesia, which is 70 percent owned by Fara, and 30 percent owned by Robert Totah of US-based Totah Associates Inc.

The modern rice milling facility to be constructed on a 6 ha plot of land will have a production capacity of 220,000 tons per year.  The facility is installed with the latest technology produced by Satake, a Japanese company.

“We’ll focus on producing premium rice with less than five percent of broken level,” said Fara, adding that her company will buy rice from local farmers at prices better than those offered by state logistics agency Bulog. (rei)  

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