April 25, 2011
 

Miwon to invest a corn plantation in Kalimantan

 

 

Miwon intends to put in IDR200 billion ($23.2 million) to begin a corn plantation in East Kalimantan.

 

"We have already given a presentation to East Kalimantan Governor Awang Faroek Ishak. The plantation is located in Bulungan district," the director of Miwon Indonesia, Kim Ho Jin, said on Saturday (Apr 23).

 

Kim said the corn plantation would encompass around 5,000 hectares and would be expanded if the project is successful.

 

He said corn produced in Indonesia could not compete with that of other countries in the export market because it was not of a good enough grade.

 

He also said Indonesia's corn was not accepted in the export market because its post-harvest handling did not meet international standards.

 

Due to the conditions, he said, the corn was only good for animal feed or as a material for other derivatives, including food. Kim also said corn production costs were high, forcing its corn to struggle to compete with that of other countries.

 

Kim said Miwon had 38 years of experience doing business in Indonesia. It plans to build a plant to produce corn derivative products if it can expand its field by another 5,000 hectares.

 

Miwon has done business in food and beverage production as well as plantations. Its plants and plantations are in Lampung and Bogor, while its headquarters is in Surabaya.

 

Gorontalo province in Sulawesi is one of the country's main corn-producing regions, supplying corn and other agricultural products to Miwon.

 

However, East Kalimantan is expected to become Indonesia's top corn-producing area if the Miwon plantation's development is a success.

 

"Indonesia still imports most of its corn. The plantation in East Kalimantan is expected to help reduce the country's imports," Kim said.