Govt to Spend Rp 14.5t on Agro-Industrial Areas
Jakarta. The Industry Ministry plans to begin construction of two agriculture-based industrial areas in Palu, Central Sulawesi, and Bitung, North Sulawesi, in June in an effort to add value to the region’s agricultural yield and in turn shield farmers from the fluctuating price of commodities.
Sulut Membangun, a consortium of companies based in North Sulawesi, is tasked to build the industrial area in Bitung on 53 hectares of land. The project is estimated at Rp 2 trillion ($151 million).
Meanwhile, province-owned Bangun Palu Sulteng will spend up to Rp 12.5 trillion for its construction of the 1,500 hectares industrial park in Palu.
The former will focus on fisheries, logistics and coconut industry, said Imam Haryono, director general for industrial region development at the Industry Ministry.
The industrial park in Palu will specialize in the rattan, seaweed, cacao, and mineral industry.
Both North and Central Sulawesi lack businesses that turn commodities into intermediate goods or finished products.
Farmers therefore have to sell their raw commodities directly to the market, making them prone to global price fluctuations.
Investor Daily
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