AGB Energy to produce biofuel for PLN

Jakarta (Antara News) - AGB Energy of South Korea is to invest Rp1 trln to build an integrated biofuel business, from plantation to a processing plant, under an agreement that it will supply its biofuel output to PT PLN, AGB president Kim Tae Sik said.

He said the firm has already planted jatropha (castor oil) over an area of 20 hectares in North Maluku province and aims to have up to 300,000 hectares planted to the crop in the next few years.

For that purpose, the company will also expand to Papua and East Nusa Tenggara provinces. The three are all in eastern Indonesia.

The state-run PLN director Ali Herman Ibrahim said under a memorandum of understanding between the two firms, PLN has agreed to buy biofuel from AGB to help it to speed up its electrification program in eastern Indonesia. (*)
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