JOHOR BAHARU, Dec 31 (Bernama) -- Kulim (Malaysia) Berhad (Kulim), awholly owned subsidiary of Johor Corporation (JCorp) has allocated RM479million for its oil palm plantation operations in Indonesia for the period2003-2010.

Chairman of Kulim, Tan Sri Muhammad Ali Hashim, said that from the amount,RM327 million would be used for the planting of oil palm there.

Another RM16 million would be for the existing oil palm plantations thereand RM136 million for the setting up of five oil palm mills in Sumatera.

Talking to reporters after chairing the company's extraordinary generalmeeting at Menara JCorp, Plaza Kota Raya here Wednesday, he said thebuilding of the first factory costing about RM25 million was only recentlycompleted.

He said the factory's milling production capacity was 30 metric tonnes offresh fruit bunches per day and this would be increased by stages tofulfill the demand of the domestic market.

Currently, Kulim owns 60,500 hectares of plantation land in Indonesia with20 percent of them already planted with oil palm.

"The development of the plantation land would be by stages while thefinancing for them would be through both internal sources and loans fromfinancial institutions," he said.

Muhammad Ali said that Indonesia was the focus of Kulim's investment as ithad potentail in the palm oil industry.

Meanwhile at the EGM today, decisions were also made for the company toacquire 62.03 percent equity interest in Bertam Plantation Bhd group andalso the entire equity interest of EPA Management Sdn Bhd, both of whichare companies owned by JCorp. The acquisitions were for a purchase priceconsideration of RM95.06 million.

Besides its oil palm plantation activities, Kulim is also involved in theoleochemical business and investments in Papua New Guinea.

-- BERNAMA