January 22, 2013
The Chinese plantation company Liaoning Wufeng Agricultural will sign on with Malaysian Amarak Group and local company Tri Indah Mandiri to establish a $2 billion rice plantation and integrated processing project by November in an attempt to tap into Indonesia’s growing market. Wufeng will be the majority financer of the plan with Amarak contributing up to 20% of the initial investment in Indonesia. Wufeng and Amarak have set up Rafu Indah Mandiri as a special vehicle to handle the local work. A 50,000 trial rice plantation has been set up in West Java to work with local farmers and universities to develop high yield rice varieties and advanced production methods. The joint venture will eventually invest in up to 1 million hectares of rice plantations in Indonesia and the company may seek to raise an additional $1 billion from an initial public offering in either Shanghai or Hong Kong.
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