COPENHAGEN: The Danish government has inked a Memorandum of Understanding (MoU) with the Agriculture Ministry to invest at least Rp 2 trillion (US$152.7 million) into Indonesia’s cattle, corn and sugar plantation industries.
Agriculture Minister Amran Sulaiman said the MoU would be effective for five years and would be coordinated through the Danish embassy in Indonesia. Denmark would provide the agricultural technology to Indonesia, while Indonesia would provide two million hectares of land for the investment.
“I said to them that our trade is not balanced yet. They already have a Rp 2 trillion investment in Indonesia, but I asked them to double it,” Amran said on Tuesday in Jakarta.
He added the government prepared two million hectares of farmland in Southeast Sulawesi, Kalimantan, West Nusa Tenggara, and East Nusa Tenggara. One million hectares would be allocated for live cattle, 500,000 hectares for corn plantations, and the remaining 500,000 hectares for sugarcane plantations.
The president had already approved the land, said Amran.
Denmark’s Environment and Food Minister Esben Lunde Larsen stated his country would increase investment at the technological level, adding the significant prior investment from his country.
“That is why we have signed the MoU today. We have great interest in poultry, pig meat, and dairy. Also, we have the technology to improve the production of individual farmers,” he told thejakartapost.com after the MoU signing.
