06/12/2011 (The Nation) - The Federal Government has signed a　 Memorandum of Understanding　(MoU) with　 the Barkie　 Group of Indonesia　 for an　 investment worth　 N155billion in　 mining , rubber and palm oil plantations, in Ogun and Akwa Ibom states within the next five years.

The Minister of Trade and Investment, Mr Olusegun Aganga, confirmed the development during the signing of the MoU in Abuja. He said Indonesia has overtaken Malaysia as world’s largest palm oil producers.

Aganga　 signed on behalf of the　 Federal Government, while the leader of Bakrie Group of Indonesia, Mr　Indra Bakrie, signed on behalf of the group.

"Indonesia is the second largest producer of natural rubber in the world with total production of 2.9mn tons in 2010. Average annual growth of rubber plantations in Indonesia currently stands at three per cent, which is higher than global annual growth of two per cent.

"The deal was a product of the collaboration and high level consultations between the Bakrie Group, the Ministries of Trade and Investment, Agriculture and Rural Development, Mining and Steel Development　 and some state governors　 in Nigeria.

"With this the potential to create　jobs and generate wealth for Nigeria will be easy. The Federal Government is committed to creating a conducive environment for attracting　 Foreign Direct Investments into the country.

"Barkie Group’s　 proposed investment,　 which will be managed by its investment　 vehicle in Nigeria-Bakrie Delano Africa Nigeria Limited, will　 focus on maximising　 benefits from the　 country’s　 mining sector, exploring the untapped investment potential in the agriculture and agri-business with prospects of expanding investment in six　 states　 of the federation within the next five years.

"This deal is a product of several meetings and consultations with the　 Bakrie Group,　 the Ministries　 of Trade and Investment;　 Agriculture and Rural Development and Mining and Steel Development　 and some governors　 in Nigeria. The Group will be investing $1billion in mining, rubber and oil palm plantation in Ogun and Akwa Ibom states within the next five years, but with prospect of expanding their investments in six other states in Nigeria."

Speaking during the event, the leader of the Barkie Group, Mr Bakrie, said the Group chose to invest in the country because of the abundant investment opportunities as well as potential for high returns on investment.

He said: "Nigeria is an emerging market country. Based on World Bank’s report, the country is categorised as a middle income status supported by its abundant supply of natural resources, well-developed financial and legal system, communications, transport sectors and stock exchange, which is the second largest in Africa.