South Korean investors to build corn plantations in Indonesia

Three South Korean firms plan to grow corn in Indonesia by constructing plantations in the province of Gorontalo, Sulawesi, this year.

Miwon, Harim Group and STX will cooperate with local company Gorontalo Fitrah Mandiri to build the plantations, provincial governor Fadel Muhammad said.

Fitrah Mandiri, which is owned by the provincial administration will have a 10 percent stake in the project, Fadel said.

He said the administration will make available 2,000 hectares of land under a 20-year concession for the project.

The three Korean companies will use the plantation product as feedstock for food sweetener and animal feed industries.

Fadel said Gorontalo is a potential producer of corn and has exported the commodity to Malaysia, the Philippines and Korea.