CEO of palm oil firm Golden Agri Resources, Franky Oesman Widjaja, indicated that the company plans to invest in a biofuel plant to take advantage of the government’s planned import substitution policy.
Aiming to reduce Indonesia’s growing trade deficit, the Energy and Mineral Resources Ministry has issued a regulation requiring diesel fuel to contain a 10% mixture of biofuel, effective as of September 2013.
Widjaja also stated that the company is looking to build the plant near one of state-owned oil firm Pertamina’s refineries for efficiency reasons. He said the plan will involve a minimum budget of US$50-100 million.
Golden Agri is world’s second largest palm oil plantation company. It is listed on Singapore’s SGX under the ticker symbol of GGR. Its subsidiary, PT Smart Tbk. is listed on the IDX as SMAR.