Indonesia Plans First Biodiesel Plant by 2008 - Paper
Date: 20-Apr-06
Country: INDONESIA
The joint venture, which will be called Bakrie Rekin Bio-Energy, will start construction of the factory early next year, the Jakarta Post said. The US$25 million plant is expected to come onstream in the middle of 2008.
The Jakarta Post quoted Bakrie President Director Ambono Janurianto as saying his company, which manages 31,000 hectares of oil palm plantations in Jambi, will provide the raw material for the biodiesel, including crude palm oil and other feed stock.
Bakrie Sumatera Plantations has a market capitalisation of US$184.51 million and is controlled by the family of Indonesian chief welfare minister Aburizal Bakrie.
Indonesia, a member of the OPEC cartel but forced to import a quarter of its fuels, is scrambling for alternative energy sources as its hydrocarbon reserves dwindle and soaring global oil prices increase the burden of subsidised pump rates.
In October, the government hiked domestic fuel prices in an attempt to ease pressure on its budget due to a ballooning fuel subsidy bill caused by soaring world oil prices, sending inflation to a six-year peak and driving up interest rates.
