South Korea's largest company Samsung Group plans to develop a 25,000-hectare oil palm plantation and a biodiesel refinery in Riau province with an investment of up $1.63 billion.Head of the Indonesian national team for biofuel development AlHilal Hamdi said the company had spent 1.5 trillion rupiah (about $163 million) on acquiring the land and the factory.
“They bought the land recently and that was their first investment. The total investment will likely increase by 10 times,” he was quoted by the Jakarta Post as saying Tuesday.
Hamdi said Samsung was expected to go online next year and produce 50,000 kiloliters of biodiesel per year.
However, Indonesia-based Kang Hyonghyun of Samsung C and T Corporation said he had yet to be informed of the plan.
Indonesia produces two types of biofuel - bioethanol, made from cassava, sugarcane and sorghum; and biodiesel, made from castor and crude palm oil.
The country's annual biofuel production is currently 2 million kiloliters and is expected to grow to 5 million kiloliters by 2010. (Xinhua)