Eterindo to increase biodiesel production to 140,000 metric tons

PT Eterindo Wahanatama Tbk, a publicly listed biodiesel and chemical products, will further increase the company?s biodiesel production to 140,000 metric tons a year to meet the surging demand from fuel retailers such as state-owned oil and gas company Pertamina, Kontan reported on Thursday.

Eterindo, through its subsidiary PT Anugrahinti Gemanusa operates a biodiesel plant in Gresik, East Java with a capacity of 80,000 tons a year. A larger part of the company?s production is sold to Pertamina.

Eterindo?s President Immanuel Sutarto said in Jakarta on Wednesday that the biodiesel production would be increased to meet the demand from fuel retailers. He said that beginning this month, the government required fuel retailers to blend their oil diesel with biodiesel with a biodiesel content of at least 2 percent.

Beginning July 1, the same requirement would also be imposed to mining companies which use diesel for the operation of their heavy equipment and trucks.

Immanual said that the company would open an oil palm plantation in West Kalimantan to support the company?s future biodiesel production. ?The company has 24,000 hectares of land area which could be planted with oil palm trees,? he said.(*)