Wilmar International, the world’s largest palm oil trader, plans to invest US$2 billion ($2.75 billion) in Indonesia, the Information Ministry said on its website, citing Gita Wirjawan, head of the nation’s investment board.

Wilmar may invest in various industries, including agriculture in Merauke, a town on Papua island, Wirjawan was cited as saying today. Max Ramajaya, a business-development manager at Wilmar’s local unit, said by phone that the company may build a sugar plantation, possibly in Merauke, without confirming the US$2 billion figure.

 

Wilmar may follow other palm-oil producers by expanding into Papua, the eastern-most island in Southeast Asia’s biggest economy. PT Indofood Sukses Makmur planned to buy land in Papua for plantations, President Director Anthoni Salim said on May 21.

 

Indonesia is planning to develop estates in Papua to produce food, with as much as 4 million hectares (9.9 million acres) for oil-palm plantations, Director General for Plantations Achmad Manggabarani said in 2008.

 

Wilmar plans to enter the sugar-milling and the cane- plantation businesses in Indonesia, Chief executive Officer Kuok Khoon Hong said on March 1.