Tue, 03 Aug 2010

TEMPO Interactive, Jakarta: Japan has pledged a US$16 million assistance in form of machinery, equipments, and working capital for Indonesia to develop biofuel production of byproducts from sugar industry in the country, the Industry Department said, which is expected to pave way for a similar investment in palm oil byproducts.

Secretary General of the Industry Department Agus Tjahyana said today (2/8) the assistance from New Energy and Industrial Technology Development Organization (NEDO) will specifically help Indonesia to convert molasses from sugar factories into biofuel which have been exported in the past for food industry.

Chief Director of the 10th National Plantation Firm overseeing state plantations in Eastern Java, Subiyono said factories in East Java produce 200 thousands tonnes of molasses a year or between 350 and 400 thousand tonnes if combined with those produced by farmers. Subiyono convinced that the biofuel will be used for domestic need as the firm is drafting future cooperation with Pertamina

NEDO chairman Seiji Murata said his organization has appointed Sapporo Engineering dan Sukisimaki Kai to produce the facility. Agus said the project will cost around US$25 million and the 10th State Plantation Firm will prepare US$9 million for the project.