16/8/07 (APX) KUALA LUMPUR - IOI Corp Bhd said has agreed to set up two joint ventures for oil palm cultivation in Kalimantan, Indonesia with the Harita Group and its affiliates.

The company said yesterday its foray into Indonesia would entail investing US$130mil (RM455mil) to buy stakes of 33% and 67% in two joint venture companies. 

The investment amount is “based on an estimated total enterprise value of about US$385mil,” it said.

IOI Corp said the first joint venture had a total planted area of 35,340ha and unplanted land of approximately 64,000ha, together with three palm oil mills. 

The second joint venture would have total land available for planting of about 128,000ha, it told the stock exchange.

“IOI shall be responsible for providing plantation management and technical support under a technical support agreement, whereas Harita, the local partner, will be responsible for human resource and regulatory matters, “ IOI said. – AFX-Asia