7/5/06 (The Jakarta Post, Jakarta) - The government will go ahead with a much-criticized mega-plantation project along the Indonesia-Malaysia border on Borneo Island, but only small parts of the designated area can feasibly be used, says a minister.

"We have evaluated the proposal. We found that only 180,000 (of 1.8 million) hectares are suitable to be converted into oil palm plantations," Agriculture Minister Anton Apriyantono told The Jakarta Post.

Environmental groups have opposed the plan, saying the forest-to-oil-palm project would further denude the remaining pristine Borneo forests that cover much of the border area. The groups say this could cause billions of dollars' worth of damage to the area's biodiversity, ecology and economy.

Forestry Minister Malem Sambat Kaban and State Minister of Environment Rachmat Witoelar have also objected to the plan, saying the project could encroach on conservation sites along the border.

Anton said Friday the unexpected result of the feasibility study did not mean the government would drop the project.

The government would still carry on with the project in the 180,000-hectare area and other feasible areas, he said.

"We will look for other available land outside conservation sites, outside the Heart of Borneo, which must not be disturbed for any reason," the agriculture minister said, referring to a 22-million hectare joint conservation project by Indonesia, Malaysia and Brunei aimed at saving the island's remaining natural forests.

Heart of Borneo national coordinator Bambang Supriyanto welcomed the government's decision, saying it would save three national parks and two natural reserves located in the border area.

"But, I ask the government to announce the decision to regional administrations across the country, so as to prevent them from issuing permits to convert forests into plantations along the border," he said.

Environmental activists suggested that the government instead use three million hectares of neglected land across Kalimantan that have been abandoned by plantation companies after extensive logging.

Environmental group Greenomics said if the government did not convert forests, the mega-project would be a good idea that could benefit the people of Kalimantan.

"As long as the 180,000 hectares are on forested land, we will continue to oppose the project," said Greenomics director Elfian Effendy.

Sawit (Palm) Watch coordinator Rudy Lumuru said the root problem was not just the project's environmental impact, but the failure of the country's oil palm plantation industry to increase the prosperity of local people.

He said oil palm plantations often clash with local residents over land-ownership disputes and dissatisfactory community development programs.

"Before deciding to go on with the project, I urge the government to create better regulations concerning the oil palm industry, so they will use sustainable management that benefits local people," Rudy said.