PAPUA, April 7 (Bernama) -- A Malaysian giant company will open sugar cane and oil palm plantations in Merauke district, Papua in a bid to support a development program in the district, Antara News Agency reported quoting a local official as saying.

The company, PT Crefece, a joint venture between Malaysian and Indonesian firms, has signed a memorandum of understanding with the local administration to begin the project Merauke Regent, John Gluba Gebze said on Friday.

He added the Merauke district administration has allocated 40,000 hectare of land in Yagebob sub district -- each 20,000 hectare of which is provided for a sugar cane plantation and the remaining 20,000 hectare for a palm oil plantation.

"We have also asked the company to set up sugar, cooking oil and cosmetic factories in the district," he said.

Hopefully, he said, the company would soon realize the opening of the two plantations so that they can support government program to provide locals with job opportunities.

He added Merauke has allocated 2.3 million hectare of land for economic development activity, such as agriculture and plantation so that the district will not only be capable of meeting local demand for agricultural commodities but also demand of foreign states like Papua New Guinea, Australia and some nations in South Pacific.

He also said Papua New Guinea has once expressed its wish to buy rice from Merauke's farmers, but they could not meet the neighboring country's hope due to limited production.

-- BERNAMA