State plantation companies to build biodiesel plant

A consortium of three Indonesian state plantation companies, PT PERKEBUNAN NUSANTARA (PTPN) III, IV and V, plans to start building a biodiesel plant by August, despite slim prospects of profitability. The three state companies announced the plan although many local investors who are in the same line of business have reported losses. Khairul Muluk, the president of PTPN II, said the palm-oil based biodiesel plant will be built in Belawan, North Sumatra, with a capacity of 300,000 tons a year. The consortium is inviting bidders to build the factory, which is estimated to cost Rp450 billion (US$45 million). (June 23, 2009)