The Asian Agri Group said it will commission a new bio-diesel factory with a capacity of 400,000 tons a year next week, Asia Pulse reported.
The Rp350 billion ($37 million) factory built in Dumai, Riau, will use crude palm oil (CPO) as the feedstock, company director Semion Tarigan said.
Tarigan said with the high price of CPO, the selling price would be too high for domestic market. Therefore, the company plans to export its entire production.
He told the newspaper Bisnis Indonesia the factory, construction of which started in 2006, will start with a capacity of 200,000 tons a year to be increased later to 400,000 tons.