Jakarta (Antara Bali) - The Indonesian Investment Coordinating Board (BKPM) has identified Australian businessmen interested to invest in the agricultural sector comprising plantation and integrated farms worth US$130 million, or Rp1.6 trillion.
The coordinating board's chief, Franky Sibarani, in a written statement received here on Monday stated that Australian investors are targeting to invest in the two major provinces of Lampung and Papua.
"So, the Australian investors will work with their counterparts from other countries. In Lampung, they would cooperate with Chinese investors, while in Merauke, Papua, they have established communication with South Korean investors," Franky noted.
According to Franky, the company has approached the provincial government of Lampung and the local authorities are seeking 500-600 hectares of land in Central Lampung.
"The company's representatives have visited the project's site on February 25-27, 2016, to see firsthand the potential location of the business, and they have received a positive response," Franky added.
Furthermore, the investors said that there is a possibility of a similar model being applied in their palm oil plantation in Sumatra.
"Total investment in the Lampung province is estimated at US$30 million to US$50 million," Franky noted.
"The estimated total investment value in Merauke will reach more than US$100 million. Currently, the company has received preliminary information from the Merauke regional government regarding the availability of four thousand and five thousand hectares of land for agriculture and plantations or farms," Franky remarked.
Official representative of the coordinating board's Investment Promotion Sri Moertiningroem noted that investment in the livestock sector and integrated plantation is expected to have a positive impact on Indonesia's food security.
"Two sectors of interest related to strategic commodities such as rice and beef have been submitted, the investment realization for which is expected to improve the sustainability of supply and reduce the imports of these goods," Sri explained.
Sri stated that the project's shareholders would comprise a combination of Australian as well as Chinese and South Korean investors.
Several areas of cooperation will be implemented by utilizing the local government's assets through a joint operation scheme (KSO) or "joint venture" with regional-owned enterprises.
"Several species of trees to be used for manufacturing paper will be planted in integrated livestock farms and can be integrated with cattle and goat farming, given that the need for livestock in Indonesia is still high," Sri added.
Based on the board's data, Australian investment realization in 2015 was ranked 12th, or valued at US$167 million consisting of 443 projects.
For the 2010-2015 period, the registered Australian investment in Indonesia amounted to US$2.07 billion.(WDY)
