From Government of Indonesia

Bakrie Builds Biodiesel Plant

PT Bakrie Rekin Bio Energy is building a biodiesel processing plant in Batam, which is expected to start operating mid next year and be able to process 100,000 tons of biodiesel annually, mainly for the overseas market, The Jakarta Post reported.

State Minister for Research and Technology and chairman of the Agency for the Assessment and Application of Technology Kusmayanto Kadiman laid the cornerstone at the four-hectare factory site near Kabil Port on Monday (14/5/07).

The factory and facilities will cost $22 million to build and are expected to employ at least 200 workers.

PT Bakrie Sumatera Plantation will supply the plant with crude palm oil, the main raw material for producing biodiesel.

Kusmayanto said the factory would not interrupt CPO demand for the production of domestic cooking oil. "It is the people who should change their dietary pattern. If they eat fried food, they should opt for boiled food, which is more healthier," he said.

PT Bakrie Sumatera Plantations managing director Ambono Janurianto said 70% of total production would be allocated for the overseas market and the rest for the domestic market.
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