JAKARTA, July 8 — A group of Malaysian and Chinese investors are investing about US$2 billion (RM6 billion) in Indonesia’s integrated rice farms over the next seven years.

Through joint venture company Ratu Indah Mandiri, the investors will be seeking a 50,000-hectare trial plot of land in either Java or Kalimantan.

The company will eventually invest in up to one million hectares of rice plantation in the seven-year period, English daily the Jakarta Globe reported today.

Ratu Indah president commissioner Norah Abdul Rahman said the company will work with local company Tri Indah Mandiri.

“We chose Indonesia because of its bigger choice of land and the need for it is there due to the large population,” she said.

Rice is the main staple for many of Indonesia’s more than 240 million people, with per capita consumption at up to 139kg.

Ratu Indah will supply downstream technology and processing capabilities, while Tri Indah will take care of local operations, working with local farmers in producing rice.

President director of Tri Indah Mandiri Made Dwipayana said their partnership would create mills and other downstream-processing facilities across the country to process the yield. — Bernama