02/12/2009 (Commodity Online), Monrovia - West African nation Liberia on Tuesday said it is in the final stages of securing a $1.6 billion Indonesian investment in palm oil production which is expected to create 35,000 jobs.

According to Liberia’s National Investment Commission, the investment, in south-eastern Liberia, will give a major boost to the country's post-conflict economy.

The investment deal is with Golden VerOleum, a company headquartered in Indonesia which is a subsidiary of Golden Agri-Resources (GAR), one of the world's leaders in palm oil production.

When the agreement is concluded, Golden VerOleum will need more than 200, 000 hectares for an oil palm plantation in the south-east, a region that is among the country's poorest, Commission said.

Commission said in addition to creating jobs and helping to decentralize Liberia's economy, the company has budgeted about $400,000 for palm oil mills and eventually for refineries.

Liberia recently signed another agreement valued at $800 million with Sime Darby, a Malaysian company, for a similar investment in the oil palm sector in western Liberia.

Until now, oil palm production in the country has attracted little attention from multinational companies compared to Liberia's traditional exports, iron ore, rubber, timber, gold and diamonds.

The International Financial Corporation (IFC), a member of the World Bank Group, last year presented Liberia with the findings of a study that reviewed the country's oil palm sector, assessing its competitiveness and identifying potential investment opportunities.