Jazman Shahar (left) at a press conference after the signing of the MoU. BERNAMApix

GEORGE TOWN: PT Kenaf Fibre Global (PT KFG) and Kenaf Venture Global Sdn Bhd (KVG) have inked a memorandum of understanding (MoU) to develop Indonesia’s kenaf industry with the aim to raise the local community’s socio-economic status.

PT KFG is part of the KVG group and is the first company to be set up to explore international kenaf markets.

KVG group CEO Jazman Shahar Abdollah said at the signing ceremony today that the collaboration is KGV’s first step towards creating sustainable economic opportunities to penetrate markets in other foreign countries.

Kenaf fibre has various industrial uses. The fibre is derived from a plant.

“The demand for kenaf is growing around the world in today’s diverse industrial integration coupled with the growth of eco-friendly products derived from crops. This collaboration is also an initiative to promote a higher level of sustainability.

“The estimated investment value of US$100 million (RM419 million) comprises farm land, the manufacturing division and the construction of factories to generate products for a duration of up to 30 years,“ he said.

He said the project involves about 2,000 hectares, or 4,942 acres, in an Indonesian location which will be announced later. He believes this collaboration will help spearhead and catalyse Indonesia’s Industrial Revolution (IR) in agriculture.

Earlier, Jazman Shahar signed the MoU on behalf of KVG while Rusmin Lawin represented PT KFG. Indonesia’s consul general in Penang Bambang Suharto witnessed the event.

Bambang said PT KFG will operate on three levels, namely upstream, mid-stream and downstream. Downstream refers to the end products derived from kenaf fibre.

”The use of ‘kenaf crete’, derived from kenaf fibre, as a building material is a sustainable option. It can speed up construction works by 60% and represents cost savings of 40%, besides reducing carbon footprint,“ he said.

PT KFG is equipped with the technological know-how to raise automation in Indonesia’s agricultural sector. – Bernama

https://www.thesundaily.my/business/kenaf-venture-global-in-mou-to-develop-indonesian-kenaf-industry-KI8749185
Sumber: The Sun Daily