April 28, 2015

Indonesian Prison Island attracts investments for cattle breeding

A Brazilian investor has expressed interest to invest Rp 1 trillion (US$77 million) into cattle breeding on Buru island in Maluku, among other investors from Indonesia and Australia, all keen to tap Indonesia's lucrative but under-supplied beef market, the Jakarta Globe reports.

The government had expected to sign on Monday the memorandum of understanding of the investment plan with the Brazilian investor, whose plan includes producing 200,000 cattle a year.

"There are five (who are attracted to invest) and local investors, but this (Brazilian investor) is the one we might expect," said agriculture minister Amran Sulaiman on Sunday.

Unsound policies and corruption in the government have long hindered the country's ability to meet local demand of beef.

Buru Island was largely transformed into farmland by political prisoners during the New Order era under Suharto.