Investment in plantation sector up 6%

Thu, 01/12/2012 - 07:32

Investment in the country’s plantation sector increased by about 6 percent last year to Rp 51.82 trillion from Rp 48.72 trillion in the previous year, a senior government official said. 

Most of the investment went to the plantation sector including for opening up new planted areas and construction of new CPO mills, said Director of Seasonal Crops at the Ministry of Agriculture, Rismansyah Danasaputra.

He said that despite the 2-year moratorium policy on the conversion of primary forest and peatland, many planters could continue to expand as they still have huge land bank.  He expected that expansion planted acreage will continue going forward.

He said that the strong expansion in new planted acreage is reflected in the strong import of oil palm seeds.  Last year, demand for oil palm seeds reached 150 million units, and is projected to increase to 214 million seeds this year, about 5-6 percent of which would be imported as supply by nine domestic seedling companies could not fulfill the entire demand. (rei)


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