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Indonesia looks west to Papua, West Papua for green investing, empowering farmers
While companies have expressed interest, distribution, supply certainty and environmental guarantees are some of the key issues they have raised with regard to the long-term sustainability of green investments.
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President Joko ”Jokowi” Widodo (center left) and First Lady Iriana Widodo (center rear) visits the Arfak Mountains in West Papua on Oct. 27, 2019. (Antara/Thoyib)
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he government is inviting the private sector to participate in promoting green investments to empower farmers in Papua and West Papua and to reduce the two provincial economies' dependency on oil palm plantations and forestry.
Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan said that at least 24 companies, including American coffee company Starbucks, had expressed interest in green investments in the nation’s westernmost territory.
The government is looking to raise about Rp 2.8 trillion (US$200 million) for the green investment program through private-sector grants and investment as well as state funds.
The investment program aims to help local farmers cultivate cash crops such as cacao, coffee, nutmeg, sago and algae as well as develop local ecotourism. As many as 60,000 families in the two provinces are expected to benefit from the program.
“[We don't want] the people to raid the forests anymore, so we have put a moratorium on forestry development. No more palm oil plantations here, most of which are owned by big companies. Instead, we want small and medium enterprises to develop,” Luhut Pandjaitan told reporters on Feb. 27 in Sorong, West Papua, after a meeting involving private executives and local officials.
According to the Agriculture Ministry's data, 125,606 hectares of oil palm plantations exist in Papua and 97,459 hectares of oil palm plantations in West Papua in 2019.
The green investment program aims not only to empower the local people, but also to protect the provinces' forests, as the investments are to be located outside forested areas.
