From Government of Indonesia

RNI to Build Ethanol Factories

State-owned trading firm, PT Rajawali Nusantara Indonesia (RNI), said on Wednesday it is planning to build two ethanol factories with a total capacity of 200,000 liters a day to tap growing demand.

The company will build one ethanol factory in Cirebon, Central Java and another in Malang, East Java, each with a capacity of 100,000 liters a day, RNI's development director, Son Ramadir, said Wednesday (31/1/07).

The project will cost $40 million and the factories are expected to be completed between 2008 and 2009.

"We are developing a new strategy in the downstream industry including in renewable energy to improve competitiveness," he said, according to Reuters. "The potential is huge with surging crude oil prices and declining crude oil reserves in the country," he said, adding that the company will use sugar cane molasses from its own plantations to produce ethanol.

Ramadir further said that RNI is projecting increased sales and exports to Asia, Europe and Africa this year.
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