REPUBLIKA.CO.ID, JAKARTA -- State forestry company Perum Perhutani is set to invest Rp200 billion next year to develop 267 thousand hectares of rice and corn fields in support of the national food security program.

"With a Rp200-billion investment, Perhutani is ready to develop rice and corn plants," Perhutani's President Director Mustoha said here on Wednesday.

Rice and corn will be grown between trees in forests managed by Perhutani, he added.

Perhutani will prepare adaptive zones wherein the distance between teak trees will be widened to 8x2 or 10x2 meters from 3x3 meters, he noted.

To grow rice and corn on forested land, Perhutani will receive government subsidies for fertilizers, high-yielding seeds, agriculture tools, and post-harvest facilities, he remarked.

In the initial phase of the project, Perhutani will produce 1 million tons of rice and 500 thousand tons of corn per year.

"Besides being a producer, Perhutani is also ready to become an "off-taker" of products from farmers because we have warehouses in a number of places," he pointed out.

The program will start only next year as the company has to adjust to amendments in Government Regulation Number 72 of 2010 regarding Perhutani and Government Regulation Number 24 of 2010 regarding the control of forested land.

Perhutani currently controls 2.5 million hectares of forest.

Last year, the company posted a net profit of Rp380 billion. It has projected its net profit to increase 12 percent to Rp425.6 billion this year.

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