REPUBLIKA.CO.ID, BALIKPAPAN -- East Kalimantan Governor Awang Faroek Ishak is seeking to woo investors to the province saying opportunities are wide open for investment in various sectors other than in oil and gas sector.
"One of the sectors is plantation, which has proved to contribute significantly to improving the people's economy," Awang Faroek said when commissioning a palm oil processing plant built as part of an integrated industry that includes oil palm plantation and beef cattle farming by PT Fairco Agro Mandiri (PT FAM) in the sub-district of Kaubun, Kutai Timur.
Awang Faroek said the presence of PT Fairco Agro Mandiri in that area showed that East Kalimantan is safe for investment and that the province is a potential place for investment.
"The presence of PT FAM will stimulate the local people to be more active in developing the plantation sector," he said.
He expressed the hope that improved investment climate would attract more investors to the region.
He pledged to simplify the administrative process and investment procedure and guarantee investment security in East Kalimantan.
The plantation sector has a bright prospect with potential to replace the oil and gas sector as the main source of income for the province in the future, he said.
The province could not continue to rely only on oil and gas for income, he said, adding oil and gas reserves could be depleted sometime in the future.
East Kalimantan has ample land for development of big plantations of oil palm, rubber and cacao, pepper, coffee, etc, he said.
"We thank God as the program of One Million Hectares of Oil Palm Plantation in East Kalimantan has come to reality and now we will continue with the second phase of the program for 1.4 million hectares to be carried out in the 2014-2018 period," he said.
The government expressed optimism that the plantation sector would grow fast in the province with expansion by boyh smallholders and large plantation companies.
He said plantations have been expanding in East Kalimantan over the past several years with a number of plantation companies beginning to operate in the region.
Expansion of oil palm plantations has necessitated construction of factories to produce crude palm oil (CPO), he said.
Currently, East Kalimantan is building a Special Economic Zone (KEK) in Maloy, Kutai Timur complete with port facility, commercial area, warehouses, storage tanks, industrial area, settlement area, service areas and office complex.
He said he hoped that PT. FAM would ind it more convenient in doing its business as the government has guaranteed investment security and facility.
In connection with the program of revitalization of smallholder's plantations, PT FAM is expected to take part in the development of plasma farms, he said.
PT. FAM should also observe the program to preserve the environment in expanding its business to prevent pollution and natural disaster, he said.
He also reminded the company of the obligation to take part in the program of corporate social responsibility (CSR), especially for the people around its plantation to prevent conflict with the local people.
Economic gap and social jealousy easily stir and trigger conflict, he warned.
A director of PT FAM, Howard Kandiawan, said the company already has 4,821 hectares of productive plantation turning out around 20 tons of oil palm fresh fruity bunches per hectare.
"We have built a factory with processing capacity of 45 tons of fresh fruit bunches of oil palm per hour to be increased to 60 tons per hour," Howard said.
The company has also established a cooperative for plasma farmers, an elementary school for the children of the company's workers and local people as form of social contribution, he said.
The company has 1,634 workers of local people, therefore, it had contributed to the welfare of the district, he said.
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