MVP, SL Agritech eye transfer of hybrid rice project to Indonesia

MANILA, Philippines - The group of businessman Manuel V. Pangilinan and hybrid rice seed producer SL Agritech Corp. may shift their planned joint venture for commercial rice production to Indonesia instead of the Philippines because of difficulties in securing large tracts of land.

SL Agritech chairman and chief executive officer Henry Lim Bon Liong said Indonesia is considered as a viable location because both First Pacific (through Indofood) and SL Agritech already have a presence there.

“We already have people there, we might do it in Indonesia. This is still preliminary and we are still open to negotiations,” he said.

He said Indonesia is more known for producing palm oil but has a big potential for rice production.

“After a few rounds of negotiations, if we still cannot get large tracts of land here (Philippines), we can also try in Indonesia because we already have people there. So right now, our direction is there,” he said.

Lim said they initially wanted to acquire 3,000 hectares of land in Iloilo but Pangilinan’s group wants a larger land area.

Under the joint venture, SL Agritech would provide the hybrid rice seeds that would be used in large-scale farming.

SL Agrtitech grows rice and hybrid rice seeds in Laguna, Nueva Ecija and Mindoro. It has also expanded its presence to Indonesia, Vietnam and Bangladesh.

Pangilinan had said they plan to lease the land that would be developed for commercial rice farming.

The produce would be distributed for domestic consumption and for export.

“The problem with acquiring land here is that these are either under land reform or (have been placed under) conversion,” said Lim.