Chinese investors are keen to be involved in the sago processing industry in the Papua region.
Indonesia's investment co-ordinating agency, BKPM, said an initial investment of $US62 million dollars was being planned.
Tabloid Jubi reported the BKPM chief Franky Sibarani saying there was a strategic value in the sago processing investment because the sector was categorized as labour-intensive and this development was expected to employ about 1500 workers in Papua.
He said the Chinese investors were positive not only in terms of increasing investment in Indonesia, but also in taking an important role in Papua's development.
Franky Sibarani said investment was being planned in more sago processing, wood processing and a biomass electricity power plant.