Indonesia on Wednesday launched a giant project to
create a $5 billion agricultural estate spanning three districts
in Papua.

The Merauke Integrated Food and Energy Estate program is the
latest attempt by the government to gain self-sufficiency in
food production, with a longer-term goal of someday becoming a
food-exporting nation.

At a ceremony held in Merauke district on Wednesday, Agriculture
Minister Suswono said he expected that the area would become the
nation’s bread basket.

“Merauke needs support from all stake holders to become the
center for food crop production and renewable energy in the
eastern part of the country,” Suswono said.

A number of local investors are currently developing large-scale
farms in Merauke, including the Medco Group, the Artha Graha
Group and Sinar Mas Group.

According to documents from the Agriculture Ministry, there will
be four areas developed between 2010 and 2014 in Merauke and the
surrounding areas of Semangga, Sota and Tanah Miring.

Slated to cover about 480,000 hectares, the project is expected
to yield a number of agricultural products, such as rice, corn,
nuts, fish and cattle.

Speaking about the potential harvests the land could offer,
Suswono said he expects the area to produce enormous annual
output, including almost two million tons of rice, two million
tons of corn and 167,000 tons of soybeans.

He added that the area would also provide grazing for 64,000
cattle.

He said the state could also yield 2.5 million tons of sugar and
937,000 tons of palm oil per year.

The government initially calculated the project would require as
much as 1.28 million hectares of land, but after a review by the
central government found that large amounts of the land surveyed
belonged to indigenous people or was classified as peat land,
the estimate was lowered to 480,000 hectares

Original documents about MIFEE give an acreage of 1.6 million ha. The
figure has apparently been cut to 480,000 ha.]

The Jakarta Globe
August 12, 2010

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