Wilmar building bio-diesel plant in Dumai

Wilmar Energy, through its subsidiary PT Bukit Kapur Reksa (BKR), is building a bio-diesel plant with a capacity of one million crude palm oil (CPO) per year in Dumai, Riau province.

"The construction of the plant started at the end of December 2006 and it is expected to start operation in May this year," said Hanafi, head of the province' palm oil plantation office in Pekanbaru late last week.

According to Hanafi, the project is part of the bio-diesel projects launched by businessmen and the government in Jakarta last month.

Hanafi said that he had yet to be informed on the amount of investment for the plant, the expected number of employees and feedstock for CPO. "Possibly, we'll obtain data on the matters from the company within two or three days from now," he said.

He said the project would provide new job opportunities for the local people and can take advantage of the palm oil plantation in the province, which is the largest in Indonesia.

"Currently, Riau's palm oil plantation area covers 1.5 million hectares and the area is expected to expand considering that the province is now developing a palm oil plantation program called K21 aimed to eradicate poverty, stupidity and building infrastructure," he said.

He said that state-owned plantation firm PT Perkebunan Nusantara (PTPN) V and Sinar Mas Group also planned to build a bio-diesel plant in the province. (*)