MARKET DEVELOPMENT
FGV To Lend Expertise To Develop Indonesia's Downstream Palm Oil Sector
FGV To Lend Expertise To Develop Indonesia's Downstream Palm Oil Sector
31/07/2015 (Bernama) - Felda Global Venture Holdings Bhd (FGV) will lead efforts to develop a special economic zone for palm oil downstream processing in Indonesia.
Deputy Minister in the Prime Minister's Department Datuk Razali Ibrahim said discussions on the project with the Indonesian government began today, specifically on the setting up of a team to identify a suitable site and determine the investment value and other matters.
He said Malaysia will contribute research and development expertise through FGV and later form a joint venture with Indonesia's Rajawali Group to set up the special zone.
"The team is identifying a site for the special zone which is expected to become a reality in 18 months, and it will be one of a kind in the world," he told reporters after attending a meeting on the project here today.
It is understood the Indonesian government is evaluating five potential sites with a port and airport -- Balikpapan, Surabaya, Papua, Jayapura and Dumai.
Razali said the project, which recognises Malaysia's expertise in palm oil downstream processing, would make Indonesia the world's largest oil palm hub.
The two countries together account for 85 per cent of global palm oil production.
Meanwhile, Advisor to Indonesia's Coordinating Minister for Economic Affairs Lin Che Wei said the republic previously focused too much on oil palm exports while importing donwstream products.
He said the two countries need not compete with each other in the oil palm industry but could instead share experiences and expertise to create the special zone.
Also present at the meeting was FGV Group President and Chief Executive Officer Datuk Mohamad Emir Mavani Abdullah.
FGV earlier acquired two plantations in Kalimantan covering 21,037 hectares (ha.), bringing its total land bank to about 446,000 ha., including 77,422 ha. in Indonesia.
The plantation giant now owns 42,000 ha. of oil palm plantations in East and Central Kalimantan through Trurich Resource Sdn Bhd, a joint venture between FGV Kalimantan Sdn Bhd and Lembaga Tabung Haji, as well as 14,385 ha. in West Kalimantan through its subsidiary PT Citra Niaga.
FGV acquired a 95 per cent stake in PT Temila Agro Abadi, which owns 8,193 ha. of oil palm plantations in West Kalimantan, for RM25.695 million.
Deputy Minister in the Prime Minister's Department Datuk Razali Ibrahim said discussions on the project with the Indonesian government began today, specifically on the setting up of a team to identify a suitable site and determine the investment value and other matters.
He said Malaysia will contribute research and development expertise through FGV and later form a joint venture with Indonesia's Rajawali Group to set up the special zone.
"The team is identifying a site for the special zone which is expected to become a reality in 18 months, and it will be one of a kind in the world," he told reporters after attending a meeting on the project here today.
It is understood the Indonesian government is evaluating five potential sites with a port and airport -- Balikpapan, Surabaya, Papua, Jayapura and Dumai.
Razali said the project, which recognises Malaysia's expertise in palm oil downstream processing, would make Indonesia the world's largest oil palm hub.
The two countries together account for 85 per cent of global palm oil production.
Meanwhile, Advisor to Indonesia's Coordinating Minister for Economic Affairs Lin Che Wei said the republic previously focused too much on oil palm exports while importing donwstream products.
He said the two countries need not compete with each other in the oil palm industry but could instead share experiences and expertise to create the special zone.
Also present at the meeting was FGV Group President and Chief Executive Officer Datuk Mohamad Emir Mavani Abdullah.
FGV earlier acquired two plantations in Kalimantan covering 21,037 hectares (ha.), bringing its total land bank to about 446,000 ha., including 77,422 ha. in Indonesia.
The plantation giant now owns 42,000 ha. of oil palm plantations in East and Central Kalimantan through Trurich Resource Sdn Bhd, a joint venture between FGV Kalimantan Sdn Bhd and Lembaga Tabung Haji, as well as 14,385 ha. in West Kalimantan through its subsidiary PT Citra Niaga.
FGV acquired a 95 per cent stake in PT Temila Agro Abadi, which owns 8,193 ha. of oil palm plantations in West Kalimantan, for RM25.695 million.