US to build ethanol plant in Indonesia

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United States Postal Service vehicle is running on E85 (ethanol fuel blend 85 percent), a "flex-fuel" blend in Saint Paul, Minnesota. (illustration)
Rep: Dwi Murdaningsih/Satya Festiani Red: Yeyen Rostiyani

REPUBLIKA.CO.ID, JAKARTA - US Company Celanese Corporation will spend around two billion USD to 2.5 billion USD to build ethanol plant in East Kalimantan, Indonesia. Built in the fourth quarter of 2013, the plant will turn low calorie coal, the natural resources of East Kalimantan, into ethanol.

Minister of Industry MS Hidayat met with US Ambassador to Indonesia Scot Marciel to talk on the investment yesterday. "Celanese asks for the incentive on tax holiday," Minister MS Hidayat said on Tuesday.

The meeting was also attended by Director General of International Industry Cooperation at the Ministry of Industry Agus Tjahajana, Director General of Manufacture Industry Basis Panggah Susanto, and Executive Director of Pertamina Karen Agustiawan.

Panggah Susanto said the plant, scheduled to be finished by 2016, could produce up to 1.1 million tonnes of ethanol, which would be blended into gasoline. Celanese will be cooperated with Pertamina to sell the products. Scot Marciel believes that ethanol will have promising market in Indonesia.

 

 
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