December 5, 2007

Monsanto to invest in Indonesian seed industry

Multinational company PT Monsanto is planning to invest around US$5 million in the development of a seed industry in Indonesia, according to an Indonesian Agriculture Ministry official.

Seeds of interest include paddy, corn and soy, said Sutarto Alimoeso, a spokesman of the ministry's food crops directorate general.

However, Monsanto would not be the trailblazer in the country's seed industry. Several companies such as PT SAS, PT Bosawa, and PT Medco are already actively participating in the industry, Sutarto said. 

Sutarto said PT Bosawa and Sampoerna Sinergies had signed a memorandum of understanding (MoU) to develop oil palm and cassava as the raw material of biofuel, and also to develop a hybrid paddy, while PT Medco was also developing cassava and paddy through System Rice Intensification.

Meanwhile, regional governments, such as North Sumatra's provincial administration, are also cooperating with other countries to develop corn, he added.