Companies That Have Not Obtained Permits, But Are Reported to Have Expressed Interest.
Last Updated 29/07/13
Sinar Mas is one of the biggest and nastiest forestry companies in Indonesia. Its plan to fell one million hectares of forest in Southern Papua to plant oil palm has fallen through, although it may still have plans in Mappi regency and is looking to expand its oil palm plantations in the Northern part of West Papua. However, several newspapers report that Sinar Mas is now interested in Sugar. For example, in April 2011 Indonesia Finance Today reported Franky Osman Widjaya, Chief Commissioner of PT Sinar Mas Agro Resources and Technology Tbk as saying his company will meet all the requirements to acquire the permits to invest in Merauke.1
Another huge plantation company, the Salim group also is a major food manufacturer through the Indofoods company. The Indonesian press has also quoted the group’s president, Anthoni Salim expressing an interest in looking for land in Merauke for both sugar-cane and oil palm, claiming that it has become difficult to find land in Sumatra and Kalimantan.2
It has also been reported that both Sinar Mas and Salim Group would consider building infrastructure in Merauke, in exchange for land and tax-holidays.3
However, neither group appears to have been applying for permits in Merauke, and there have been no recent news reports to suggest they are intending to follow this up.
Companies That Have Dropped Out Of MIFEE
Bakrie Sumatera Plantations
This company has frequently been listed as being one of the investors in MIFEE. Actually, the company had a plan for a sugar estate from 2007 onwards, but abandoned the plan in 2010, declaring that it would not benefit the company.4