Indo Bio Fuels gets $52 million loan to build biodiesel plant

Biodiesel producer PT Indo Bio Fuels (IBF) has received a US$52 million loan from the Export-Import Bank of Malaysia Berhad (Exim Bank) to build a biodiesel plant in Dumai, Riau.

The project will need a total investment of around $60 million.

 

“We have prepared around  $8 million as our own capital,” M. Nur Adib, one of the shareholders of the IBF, told Investor Daily in Jakarta over the weekend.

 

The plant that covers an area of 16 hectares is expected to be completed and commence production in 2008. It has set production target of around 200,000 tons per year or 600 tons per day and its output will be exported to Europe, especially The Netherlands and Germany.

 

“The deadline for the completion of the plant will not be met as earlier plan by the end of 2007. It’s usual because of the factors like getting permits from bureaucracy, which will take a longer time,” he said.

 

Nur Adib said that PT IBF is a foreign company with 80 percent of the shares belonging to two Australian companies. However, he declined to reveal their names. (*)