Largest Bio-ethanol Factory to be Built
Friday, 01 December, 2006 | 15:40 WIB

Tempo Interactive, Bandung: Bio-ethanol producer of South Korea LBL Network Ltd has signed a Memorandum of Understanding with West Java Province and the governments of Kuningan, Subang, Sumedang and Indramayu regencies to build a factory for processing yams to bio-ethanol in West Java. Bio-ethanol is a mixed material for premium gas.

The West Java government will give facilities to people in Kuningan, Subang, Sumedang and Indramayu to plant yams, the Manihot esculanta trans species. The four regions will be the base for planting yams. “The project will be aimed at developing the bio-ethanol industry,” said President and CEO of LBL Network Co. Ltd Kang Yong-soo in Bandung yesterday (11/30).

In its operation, the South Korean company has invited PT Mitra Sae International as the administrator of joint operation in developing the premium factory. The material is a mixture of premium and 5 percent ethanol using yams as its raw material.

According to Diractor of PT Mitra Sae International Tony Firmansyah, the factory that is to be built has manufacturing capacity of 200 million liters of ethanol per year. The location will be of around Indramayun Sumedang or Subang. Total investment, including working capital is US$100 million. “This the largest bio-ethanol industry in Indonesia,” he said.

In order to meet the production target, he said, fresh yams totaling 1.2 million tons per year will be required as the raw material. It is estimated that the fresh yams need 23 thousand hectares of land. However, to preserve the continuation of yam production, 50 thousand hectares of land is required.

Ahmad Fikri
_________________________ Indonesian Business and Investment News Aggregator