U.S. firm to invest $US1.5 b for coal gasification project in Kalimantan

By Bambang Atmaja

U.S. giant firm, Olanese, plans to invest $US1.5 billion to build a factory for coal gasification in Kalimantan, a minister said here on Tuesday.

Industry Minister MS Hidayat said that he met the representative of the firm along with the top official of PT Pertamina on Tuesday morning, discussing the plan.

"This morning I met with investors from US, they come with President Director of Pertamina (Karen Agustiawan). It will invest for coal gasification in Kalimantan. It will invest $US1.5 billion," he said at the State Palace.

The minister said that Olanese will cooperate with PT Pertamina in the project that would start at the next three months.

"PT Pertamina said that it was Okay, All the the study has been completed and 3 months from now it can kick off the project," said Hidayat.

"The firm (Olanese) has been successful conducting such project in China and it will conduct similar project here. It also plans to build a factory to produce ethanol," he said.

Editing by Adianto P. Simamora