Tunas Baru develops biodiesel plant

IDX-listed palm oil plantation company PT Tunas Baru Lampung Tbk is developing a biodiesel plant with a capacity of 1,050 tons of crude palm oil per day as the company aims to switch its main business into biodiesel production, Kontan reported on Wednesday.

The paper quoted company Corporate Secretary Hardy Phan as saying that total investment for the plant is estimated at US$15 million. He said that the company plans to seek shareholders approval on December 3 for the proposed change in its main business. The report did not say where the plant is located.

Hardy said the change in the company?s main business into biodiesel production is to increase revenue amid growing demand for the fuel. He pointed out that state-owned oil and gas firm PT Pertamina will increase its biodiesel mix to 20 percent, while state-owned electricity firm PT PLN to 30 percent. (*)