More plans for Indo palm oil
Friday, July 27, 2007
INDONESIA'S PT Asian Agri plans to invest 1.3 trillion rupiah (US$142.9 million) to build crude palm oil factories to increase its production by up to 10 percent, a local paper reported yesterday.
Investor Daily quoted Semion Tarigan, the director of one of its units, PT Inti Indosawit, as saying the firm planned to expand its annual crude palm oil production capacity by 100,000 tonnes.
"The investment worth 1.3 trillion rupiah is for building five crude palm oil factories and several oleochemical processing units," Tarigan said. Asian Agri has 150,000 hectares of palm oil plantations and 16 crude palm oil processing factories with a production of one million tonnes of crude palm oil per year. Indonesia, the world's second largest palm oil producer, plans to increase the use of alternative energy in its power plants as well as introducing biofuel for motorists. Rudy Victor Sinaga, the company's corporate communications manager, said most of the investment would come from the firm's own cash and the rest from bank credit.
Sinaga said 60 per cent of the firm's production was exported and the rest was for the domestic market. Besides palm oil, the company also has around 10,000 hectares of rubber and 2,000 hectares of cocoa plantations.
Palm plantations cover about six million hectares in Indonesia and the area is expected to expand to around eight million hectares by 2010 to meet growing global demand for biofuels. Meanwhile, Jakarta on Wednesday announced that it may cap the area that plantation companies may own to prevent single groups from becoming too dominant. Agencies
Investor Daily quoted Semion Tarigan, the director of one of its units, PT Inti Indosawit, as saying the firm planned to expand its annual crude palm oil production capacity by 100,000 tonnes.
"The investment worth 1.3 trillion rupiah is for building five crude palm oil factories and several oleochemical processing units," Tarigan said. Asian Agri has 150,000 hectares of palm oil plantations and 16 crude palm oil processing factories with a production of one million tonnes of crude palm oil per year. Indonesia, the world's second largest palm oil producer, plans to increase the use of alternative energy in its power plants as well as introducing biofuel for motorists. Rudy Victor Sinaga, the company's corporate communications manager, said most of the investment would come from the firm's own cash and the rest from bank credit.
Sinaga said 60 per cent of the firm's production was exported and the rest was for the domestic market. Besides palm oil, the company also has around 10,000 hectares of rubber and 2,000 hectares of cocoa plantations.
Palm plantations cover about six million hectares in Indonesia and the area is expected to expand to around eight million hectares by 2010 to meet growing global demand for biofuels. Meanwhile, Jakarta on Wednesday announced that it may cap the area that plantation companies may own to prevent single groups from becoming too dominant. Agencies
Business Besides Oil
