Three CPO factories to be built in Pesisir Selatan

Painan, W Sumatra (ANTARA News) - Three crude palm oil (CPO) processing plants soon will be built in Pesisir Selatan regency, West Sumatra province.

"The three CPO plants belonged to PT CCI, PT Sapta and PT Incasi Raya and will be built in Linggo Sari Baganti, Basa Ampek Balai Tapan and Lunang Silaut sub-districts," Pesisir Selatan regent Nasrul Abit said in Painan on Wednesday.

One of the two factories has a production capacity of 2 x 60 tons per hour and the other one in Linggo Sari Baganti 40 tons per hour.

He said the plan to build the factories is a follow up a meeting of CPO producers in Padang some time ago. Of the six companies with a planned investment in the regency, three have obtained their permits.

The building of the three CPO processing plants in the regency will raise the competitiveness of the price of the local people`s fresh oil palm fruits.

"The farmers did not have a choice in marketing their produce in Pesisir Selatan, but the three new plants the farmers will have a choice in the sale of their oil palm," Nasrul said.

Likewise is the case with the businessmen who can no longer buy the produce after harvest at a low price.

Nasrul said the construction of the three CPO plants will cost hundreds of billions of rupiah from domestic investors. This he said is a sign of an improved investment climate in the regency.

According to plan the three investors will start building the factories in 2011, and in 2012 two others will be built in Pesisir Selatan with the same production capacity.

Right now the regency has two new oil palm processing factories, and with the operation of the three plants, the regency will have five palm oil processing factories.

Pesisir Selatan is one of the palm oil production centers in West Sumatra with 70,000 ha of estates, and the biggest are run by PT CCI 13,250 he, PT Incasi Raya 12,279 ha, PT Sukses Jaya Wood 10,000 ha, PT SBJ 7,070 ha, PT SJAL 5,500 ha, and PT SAK 4,900 ha.

In the meantime, the land run by the people, the local people`s estates 968.5 ha with a production of 6.5 tons per ha per year. (*)