Sinar Mas to open CPO plant in Irian Jaya

Sinar Mas to open CPO plant in Irian Jaya

JAKARTA (JP): The widely diversified Sinar Mas Group is
currently developing a new crude palm oil (CPO) refinery plant in
Irian Jaya and a port to support its CPO exports from the
province, a company official has said.

The official in charge of the projects, Hutahuruk, was quoted
by Antara as saying on Saturday that the development of the
refinery and port was going well despite the current fluctuating
political situation in the province.

The new refinery is located in Lereh district, about 200
kilometers from Irian Jaya's capital city of Jayapura. The port
is in Demta, about 170 kilometers from Jayapura.

He said the CPO refinery was expected to complement the
group's 40,000-hectare palm oil plantation which it opened two
years ago, also in Lereh.

The plantation is the largest of its kind in the country.

"The refinery itself has an installed capacity to process 15
tons of fresh palm fruit into three tons of CPO a day," he said.

He said the Sinar Mas Group planned to build more refineries
in the area to anticipate higher harvest volumes in the near
future in line with the group's plan to expand its plantations.

He said the group would construct two refineries, meaning it
would have a total production capacity of 60 tons of fresh fruit
plummet a day, or about 12 tons of CPO a day.

Hutahuruk did not mention when these refineries would be
completed.

He also declined to reveal the amount of money invested in the
new refinery and port.

Some sources estimate the group has allocated at least Rp 50
billion (US$5.5 million) for the construction of the refinery and
another Rp 46 billion for the new port.

Hutahuruk said the development of new port was expected to
support the group's CPO business through export activities.

He said the port would be furnished with modern facilities,
including two 15,000-ton capacity tanks and one 2,000-ton
capacity tank to store CPO prior to shipment. (cst)