Forestry Investment – Carbon Plus, a UK mining company, is planning to invest US$180 million in the Indonesian forestry sector, according to its Director of Forestry Production, Hadi Daryanto.
The investment is to be made in partnership with Usaha Tani Lestari. It will also involve investment from foreign firms including Korea-based Taiyoung Engreen which, together with another South Korean firm, is to invest around US$70.5 million in the project.
Daryanto stated that the joint venture hopes to “develop about 160,000 hectares of production forests in West Nusa Tengara, East Nusa Tenggara and Papua.” The wood production will be used to feed the wood processing plant that they are planning to built at a later date in Gunucg Mas. This plant is pending government approval and will produce renewable energy from the woody biomass (wood pellets) produced at the plantation.
Daryanto says that he expects more such investments as increasing numbers of firms become involved in renewable energy production. He says, “I think with such appeals, we’ll see more and more companies involved in forest-related green industries.” He told the Jakarta Post newspaper, “demand will continue to rise and that’s why the wood pellet business is very promising.”