Palembang, South Sumatra (ANTARA News) - National corporation PT Wijaya Karya (Wika) and PT Pertamina`s Management Unit (UP)-III Plaju are planning to set up a biodiesel industry in South Sumatra, a spokesperson said.
The two companies will invest Rp350 billion in the project which will utilize crude palm oil derived from the output of 100,000 ha of oil palm plantations in South Sumatra and Jambi provinces, PT Wika business manager Agung Yunanto said here Tuesday.
The project would also be carried out with state-owned plantation company PTPN VII and state-owned electricity company PT PLN, Agung said after a meeting with South Sumatra Governor Syahrial Oesman.
Agung, however, could not mention where the proposed biodiesel plant using German technology would be set up.
Governor Syahrial said each of the two companies would open oil palm plantations on 26,000 ha of land in OKI, Banyuasin and Muara Enin districts in 2007.
"So, raw material to make biodiesel is not a problem in South Sumatra," he said.
"The central government intends to open 1.5 million ha of oil palm plantations nation-wide this year. The South Sumatra administration has been entrusted with initiating oil plam plantations on 300,000 ha of the total," he said. (*)