JAKARTA, Indonesia (AP) -- Indonesia is seeking US$560 million (euro460million) to develop massive palm oil plantations along the Malaysianborder in Borneo, the agriculture minister said Tuesday.The plantations are expected to occupy 214,000 hectares (528,800 acres) ofland in Kalimantan province, providing more than 100,000 jobs, AntonApriyantono said.

"We are working on the details. We hope to execute the plan next year," hesaid, adding that domestic and foreign investors would be invited to takepart. "We will help with licenses and tax incentives."

The project will cost 5.5 trillion rupiah (US$560 million, euro460million) over a five-year period.

Palm oil is used for cooking throughout Southeast Asia.

Indonesia, the world's second-largest palm oil producer after Malaysia,produced 12.4 million tons of crude palm oil in 2004. The new project isexpected to boost the country's annual output by around 554,000 metrictons by 2011.

Many of the jobs are expected to go to indigenous communities along the850 kilometer-long (530-mile) border, some of whom seek work illegally inMalaysia.