JAKARTA: PT Rajawali Nusantara Indonesia allocates IDR1.25 trillion capital expenditure to expand palm and rubber plantation area to 100,000 hectare from 60,000 ha.
The land expansion will be conducted gradually for each 10,000 ha in South Sumatra region until 2014, PT Rajawali Nusantara Indonesia (RNI) Director Ismed Hasan Putro said.
“The total investment to expand the plantation area up to 100.000 ha may reach IDR1.25 trillion. It’s only for palm and rubber area,” he said on Wednesday, May 16, 2012.
About 80% of the investment funds may come from bank loan and the remaining 20% from internal cash.
In this context, I always emphasize SOEs synergies. We are now doing it with BRI and BNI. However, it could also in form of consortium since private banks are also interested to join with competitive interest,” he said.
It needs six years from land clearing, seeding, fertilizing, to harvesting and the production process or new processing can be done afterwards.
“RNI will need new plant for every [additional] 9,000 ha. We need at least six more plants if the company develops 60,000 ha, which will be established in the fourth or fifth year ahead of production,” he added. (T06/aph)