Indonesian palm oil firm eyeing massive plantation in Mindanao

SCREENGRAB from www.musimmas.com

PT. Musim Mas, the second largest palm oil processor in Indonesia, is eyeing to set up a palm oil plantation and possibly, a refinery in Mindanao, as part of its plans to further expand in the region.

Togar Sitanggang, senior manager for corporate affairs of PT. Musim Mas told reporters in Manila on Friday that company officials are expected to visit within the year the potential locations in Mindanao, where land is available to set up such plantations.

For the company’s venture to be economical, it has to have roughly 75,000 hectares of land for palm oil, which will be able to support a refining facility that can produce some 300,000 metric tons yearly, Sitanggang explained.

He however declined to cite potential investments should the company decide to push through with the project. He noted that everything remained exploratory and that the company is expected to make an investment decision by next year.

According to Sitanggang, PT Musim Mas is more likely to push through with the project if the government is able to give adequate assurance that could protect its investments in the Philippines.

Among the factors affecting the company’s decision to push through with the proposed palm oil plantation was land security, which meant that the land to be offered to the company must be cleared of any disputes from those claiming ownership.

The investment climate must be conducive while the local authorities  should also be receptive of PT Musim Mas’ proposed plantation, Sitanggang further explained.

Other factors include security and power supply. Amy R. Remo