PROJECT

Projects

Environmental Review Summary

Project Number

10233

Company Name

GAWI MAKMUR KALIMANTAN, PT

Date ERS Disclosed

May 18, 2001

Country

Indonesia

Region

East Asia and the Pacific

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Apr 30, 2002
Signed : Oct 16, 2002
Invested : Dec 20, 2002

Sector

Palm Vegetable Oil

Industry

other

Department

Regional Industry - MAS Asia & Pac

Project Description

This project involves the further development of an existing palm oil plantation in South Kalimantan, Indonesia. PT Gawi Makmur Kalimantan and PT Damit Mitra Sekawan have rights to 20,000 gross ha of land, of which they have planted 10,300 ha with oil palms between 1996-1999.

The project has two main components: the agricultural component involves (i) planting an additional 4,500 ha of oil palms; (ii) maintaining about 6,000 ha of the already planted area to maturity; and (iii) purchasing agricultural equipment. At project completion, the plantation will cover 14,700 ha, all of which will be in production. The industrial component involves building two palm oil extraction plants with an installed capacity of 60 tonnes Fresh Fruit Bunches (FFB) per hour and 45 tonnes FFB per hour, respectively. Total crude palm oil (CPO) output is expected to reach 85,400 tonnes in ten years.

Construction for the first mill is underway to process the plantation production and those of neighboring small independent producers without processing facilities. Numbers of local small-holders are expected to rise when this facility becomes available to process their FFBs. Crude palm oil will be sold to the local refining industry, exported, and/or sold to the Sponsors if and when they construct a refinery.

Environmental and Social

Conclusion & Monitoring