The three state-owned companies namely PT RNI, Bulog and PT Pupuk Indonesia plan to set a joint venture for it.
Jakarta (ANTARA News) - Three Indonesian state-owned companies plan to buy a million hectare land in Australia for cattle breeding.

"We are ready to expand by purchasing a million hectare land in Australia. If approved by the Ministry of State Enterprises it will be carried out immediately," the president director of PT Rajawali Nusantara Indonesia, Ismed Hasan Putro, said on the sidelines of the launching of "Raja Daging" beef product at RNI Building here on Wednesday.

The three state-owned companies namely PT RNI, Bulog and PT Pupuk Indonesia plan to set a joint venture for it.

Ismed said the plan was made with regard to stabilizing the price of beef in the country now standing at between Rp90,000 and Rp100,000 per kilogram in the long term.

He said the funds needed for the procurement reached Rp300 billion outside the cost of calves procurement.

Ismed said several state-owned banks have given support to it including Bank Mandiri, BRI and BNI.

"I wish we could set up a consortium. By uniting we would be strong in terms of funding," he said.

In view of that he said each party would conduct a feasibility study on the project and the results would be submitted to the ministry of state enterprises.

"Before July 20, 2013 the results of the studies must already be in the hands of the minister for competition," he said.

The land is planned for breeding calves which would later be shipped to Indonesia fattening.

"It must not happen that while we have taken a business risk the beef quota issue in the country is not yet clear. There must be long commitment over the matter," he said.

It has been known so far that the cost of fattening in Indonesia is cheaper than in Australia while the cost of breeding is more expensive in Indonesia, he said.

Ismed however said he could not as yet give a guarantee that the consortium would have the land.

A million hectare land is still small compared to those owned by Brunei Darussalam reaching four million hectares and Malaysia two million hectares in Australia.

"A million hectare ranch is still relatively small compared to beef demand in Indonesia which continues to increase," he said.(*)

Editor: Heru Purwanto
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