JAKARTA-PT Multistrada Arah Sarana,a tire manufacturer will build industrial forest plantation (HTI) of 400,000 hectares of rubber in order to ensure supply of raw materials and cut production cost.
President Director of PT Multistrada Arah Sarana Pieter Tanuri revealed a rubber plantation development will cost about US$60-65 million per hectare.
That way, said Pieter, investment will reach IDR26 trillion. According to Pieter, it has already obtained permits from the Ministry of Forestry for developing rubber plantations covering 200,000 hectares in East Kalimantan and West Kalimantan.
PT Multistrada will soon apply for plantation permission on an area of 200,000 hectares in Sulawesi.
Pieter is targeting plantation to produce material up to 2 tons per hectare to support the supply of 800,000 tons of rubber each year. Until now, PT Multistrada is able to produce 16,000 motorcycle tires and 30,000 car tires per day.
In addition, Pieter added, it plans to develop a nursery center in an area of 50 hectares in East Kalimantan. The investment of nursery development costs up to IDR25 billion.
Nursery development process is expected to be finished in 16 months. Pieter confirmed the quality of seed production will be very supportive as superior raw materials derived from forest plants. (Surya Mahendra Saputra) (t03/msw)