Fri, 24 Sep 2010

TEMPO Interactive, Brebes:A Korean investor plans to build a bio-ethanol plant worth US$ 500 million in Brebes, Central Java. The Brebes Regional Secretary Assistant, Muhammad Supriyono, said the request for a license to build a plant fueled from cassava was filed last August.

The investor will collaborate with PT Rekayasa Cassava Terpadu, and the plant is estimated to employ 125.000 workers.

Supriyono said the plan will help the regional government to cut down urbanization and increase its tax revenues.

The Brebes Regional House of Representatives’ (DPRD) Commission II Head, Yuniar Syamsul Huda, supported the investment plan, saying the production of bio-ethanol fuel will not upset the environment. “There will be a positive economic impact for the local people,” he said.

Yuniar also called on the regional government not to waste a chance like this because such big investment may not arrive in Brebes in the future. “Certainly, this is in consideration of the welfare of the Brebes people,” he added.

In mid April, PT Aegria Indonesia, a Japan-based bio-ethanol company, planned to build a similar factory in Pasuruan, East Java. The 1.000 hectare land for the cultivation of jarak pagar plant (Jatropha curcas L., Euphorbiaceae) covered 12 sub-districts, including Sukorejo, Purworejo, Gempol and Prigen.

According to PT Alegria Indonesia’s official, Yoshifumi Nakamura, investors were attracted to the bio-ethanol industry because some developed countries had begun using environmentally-friendly fuel, especially when oil reserves continued to decline and the price of bio-ethanol in the world market went up.