2M Hectares of Indonesian Farm Land Allocated to Saudi Investors

Via Arabian Business, a report on a recent agreement under which Indonesia will allocate at least two million hectares (4.9m acres) of farm land to joint ventures with Saudi investors, to be used mainly for the cultivation of rice.  As the article notes:

“…The move would turn Indonesia into the world’s top rice exporter in 2009, said Alwi Shihab, the Indonesian president’s special envoy to the Middle East, according Saudi newspaper Okaz.

Some provinces in Indonesia have already signed agreements for such joint ventures, Shihab added.
Alwi said last year that Saudi BinLadin Group planned to invest at least $4.3bn in Indonesia’s rice-farming industry on 500,000 hectares of land in the Papua province.

Saudi Arabia, among the world’s top 10 rice importers, said in January that it had received the first batch of rice produced abroad by local investors, under a government-sponsored push for agricultural investment outside the kingdom.

Under the plan, Saudi Arabia would import a “reasonable amount” of commodities, provide support for those investments and sign bilateral agreements with the relevant governments, the government said.

Saudi Arabia imported a little over one million tonnes of rice in 2008, according to the US Department of Agriculture.”

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About This Blog And Its Author
Seeds Of A Revolution is committed to defining the disruptive geopolitics of the global Farms Race.  Due to the convergence of a growing world population, increased water scarcity, and a decrease in arable land & nutrient-rich soil, a spike of international investment interest in agricultural is inevitable and apt to bring a heretofore domestic industry into a truly global realm.  Whether this transition involves global land leases or acquisitions, the fundamental need for food & the protectionist feelings this need can give rise to is highly likely to cause such transactions to move quickly into the geopolitical realm.  It is this disruptive change, and the potential for a global farms race, that Seeds Of A Revolution tracks, analyzes, and forecasts.

Educated at Yale University (Bachelor of Arts - History) and Harvard (Master in Public Policy - International Development), Monty Simus has long held a keen interest in natural resource policy and the geopolitical implications of anticipated stresses in the areas of freshwater scarcity, biodiversity reserves & parks, and farm land.  Monty has lived, worked, and traveled in more than forty countries spanning Africa, China, western Europe, the Middle East, South America, and Southeast & Central Asia, and his personal interests comprise economic development, policy, investment, technology, natural resources, and the environment, with a particular focus on globalization’s impact upon these subject areas.  Monty writes about freshwater scarcity issues at www.waterpolitics.com and frontier investment markets at www.wildcatsandblacksheep.com.