Mamuju, West Sulawesi (ANTARA News) - The trade ministry has guaranteed the market for the production of a rattan processing factory to be built in West Sulawesi.

West Sulawesi governor Anwar Adnan Saleh said the trade ministry has studied potential market to dispose of the production of the factory abroad and in the country.

The study has been carried out before the factory to be built in this West Sulawesi capital city is operational, Anwar said.

The plan to build the factory in the country's largest producer of raw rattan is to dispose of the surplus in the domestic supply of raw rattan.

The government's policy of banning exports of raw rattan has been blamed for the surplus.

The government adopted the controversial policy to protect domestic rattan furniture producers which often faced difficulty in securing rattan basic material.

The government has been in a dilemma between protecting the domestic industry or the rattan farmers, who have chosen to export most of their production.

Indonesia is the world's largest producer of rattan, which grows naturally in forests mainly in Sulawesi.
Anwar said construction of the factory will start in 2013 in Mamuju and the location would be strategic with the plan to expand the Belang-Belang port into an international seaport.

He said the project is in line with the provincial development plan that would support the implementation of the Master Plan for Acceleration and Expansion of Indonesian Economic Development (MP3EI).

The plan to build the factory is confirmed with a joint ministerial decision signed by the forestry minister, trade minister and industry minister in February.

"Therefore, the central government is expected to be consistent with the implementation of the project," he said.

He said West Sulawesi is ready to implement the MP3EI program in the development of the farm sector, adding this year the region even expects to see construction of the country's largest cooking oil factory in Pasangkayu, North Mamuju.

A cacao processing factory is also planned to be built in this region next year, he said.

Indonesia is the world's third largest producer of cacao after the Ivory Coast and Ghana, and most of the country's cacao production is contributed by Sulawesi including West Sulawesi.

"Rattan, cacao and cooking oil factories will soon be built. I believe the three factories would greatly improve the economy of this region , opening more jobs to reduce unemployment," he said.  (T.H-ASG/H-YH)