Investment opportunity

Plantation

June 2004

Government of Central Kalimantan Province in the year of 1993 and 2003 has specified Spatial Structure Plan of the Province (which is so called RTRWP) and for the development of long-range plantation in which medium-term of 15 years (1993-2008) plantation areas has reserved farming land of 1,700,000 Hectares.

Pursuant to experience accompanied by research, as according to land and climate condition supporting in Central Kalimantan there are four main commodities which have been developed and have to business activity of agribusiness by companies of plantation or investors. The commodities cover oil palm, rubber, coconut, and pepper.

Oil palm is an especial commodity, which is mainly managed by big plantation companies of domestic or foreign investors, while rubber and coconut of as especial crop, which developed at plantation of ordinary farmers or community, and pepper, crop also as plantation of community expanding at some districts or certain area in the province.

With new paradigm, development of previous plantation oriented to production, which has been changed to the orientation of agribusiness efforts, and place development of system and effort of agribusiness as especial activator of development of Indonesia’s economics as a whole.

To the fore subsystem go downstream agribusiness covering processing and marketing of plantation products is very strategic aspect, because it can push other subsystem to the make-up of earnings and prosperity of society specially farmers and perpetrators of agribusiness.

Current Financing systems apply for entrepreneurs of plantation cover self-budget, loan and or banking facility. These legally apply for Cultivation of Domestic Capital (PMDN) and Cultivation of Foreign Capital (PMA).