Mammoth plantation holding company to be formed in 2012

Jakarta (ANTARA News) - Two state-owned plantation firms - PTPN I-XIV and PT Rajawali Nusantara Indonesia (RNI) - are to be merged in 2012 to form one of the world`s largest plantation holding companies, State Enterprises Minister Dahlan Iskan said,

"The draft Government Regulation on the merger will have to be finished this week, and be submitted to the ministers of finance and law and human rights next week," Dahlan said at his office here Tuesday.

The decision to form the plantation holding company was made and agreed on at a meeting with his staff earlier in the day, he said, adding the merged firms would constitute one of the largest plantation holding companies in the world.

After the draft government regulation on the merger had been endorsed by the ministries of finance and law and human rights, it would be passed on to the president for his signature and immediate implementation, Dahlan said.

"I think, the merger can be realized according to schedule as the president has in principle already agreed to set up the plantation holding company," the minister said.

Dahlan did not disclose the planned holding company`s size in terms of capital or assets and only said his ministry was still weighing which of two PTPN units - Unit III or Unit IV - would be made the holding company`s main component.

"PTPN III and PTPN IV are both top performer. PTPN III is engaged a variety of commodities such as oil palm, tea, and rubber while PTPN IV excels in business efficiency," Dahlan said. (*)