REPUBLIKA.CO.ID,JAKARTA – The Ministry of Agriculture needs 57.31 trillion IDR to develop plantation sector in 2012. The number is a far cry from the available budget of 1.48 trillion IDR. Now the government turns to private investors as well as state-owned enterprises to work on the sector.

The state budget fund is used for founding, management, and supervision of plantation development and now the ministry expects the support from investors, governmental organizations, banking, and state budget. The fund will be used to cover the remaining investment in about 55.83 trillion IDR.

“According to Indonesian Investment Coordinating Board (BPKM), some parties have interested in investing on Indonesian plantation,” the General Director of Plantation in the Ministry of Agriculture Gamal Nasir said recently.

Indonesian investment grade can attract the investors and one of them will invest in Papua plantation although the infrastructure is still an obstacle.

Since 2007, the Ministry does not release Plantation Business Permit (IUP) directly. The Ministry only gives recommendation that will be sent to local government. From the Ministry data, 100 IUP are released from local government and there are thousands companies that obtain IUP.

Meanwhile, the achievement of macro development performance of plantation sector in 2011 reaches 51.82 trillion IDR according to Directorate General of Plantation in the Ministry of Agriculture data. The number is increasing on the recent years. In 2007, the achievement was 28.21 trillion IDR.

The increasing is also seen on the involvement of manpower in plantation sector.  In 2011, it reached 20.87 million people while in 2010, it reached 20.84 million people.

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