Construction of an upstream palm oil industrial cluster in Dumai, Riau, will cost around Rp20 trillion ($3 billion), head of the provincial industry and trade office Herliyan Saleh said, Asia Pulse reported.
The funds would be needed to build road infrastructure, port, drinking water supply facility and new units of processing factory, Saleh said.
Saleh said a number of big palm oil producers had shown interest and agreed to invest in the project.
PT Wilmar, for example, had already invested Rp7 trillion to build the port facility and expand production capacity.
The interest shown by palm oil companies had also encouraged banks to take part in financing the project, he said in the Investor Daily.
Support from the government by declaring Dumai as the basis for the expansion of downstream palm oil industry in the country was needed, he said.