The Agriculture Department said more foreign and domestic investors are interested to food and agriculture potentials of Papua and China, Saudi Arabia, and Singapore are venturing opportunities to invest in food estate projects in the island.
Vice Agriculture Minister Bayu Krishnamurti said on Wednesday (20/1) “They are ready to invest, to build farms, factories and industries.”
Bayu said the investments will be directed mainly to Merauke Regency where the government have prepare 500,000 hectares of land with total land potentials up to 1.5 million hectares. The area is most suitable for rice and cane and in certain areas for garians and corn, but the land type is not very good for other kinds of crops.
The government, he said will support investments by improving infrastructures, “Some of the state budget will be allocated (for the region) especially to build infrastrctures.” But Bayu refused to reveal investment projections for the region saying there will be more than one company come to invest their money, adding that the cost sharing scheme between government and investors will depend on the business plan.